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Top 5 cryptocurrencies to watch this week: BTC, ETH, XRP, LTC, XLM

October 25, 2020 by Blockchain Consultants

Hot on the heels of Paypal’s crypto adoption, JPMorgan’s Global Markets Strategy division released a report detailing how Bitcoin (BTC) could offer “considerable” upside “if it competes more intensely with gold as an ‘alternative’ currency.”

According to the analysts, the three reasons for their long-term bullish view on Bitcoin are the large valuation gap between Bitcoin and gold, the growing utility of cryptocurrencies, and millennials preferring Bitcoin over gold in the long-term.

This report shows that institutions are gradually realizing the huge potential of cryptocurrencies and are willing to take a U-turn on their previous apprehensions.

*Crypto market data daily view. Source: Coin360*

Galaxy Digital CEO Mike Novogratz said that PayPal’s decision on crypto could force other big banks to consider ways to engage with digital assets. “We are going to see, over the next 10 years, a rebuilding of the financial infrastructure of this country,” Novogratz added in an interview with CNBC.

On similar lines, in a recent interview with Peter McCormack, Gemini crypto exchange founders Tyler and Cameron Winklevoss reiterated their bullish Bitcoin stance, explaining that they expect BTC to eventually reach $500,000.

The twins believe that if big Fortune 100 or 500 companies and central banks start buying Bitcoin for their treasury reserves, Bitcoin’s price could soar.

At the moment investors are wondering if Bitcoin can build upon the current bullish momentum and continue its journey northward.

Let’s study the charts of the top-5 cryptocurrencies to find out if Bitcoin and altcoins will move higher.

BTC/USD

Bitcoin (BTC) is in an uptrend and the price has been sustaining above the breakout level of $12,460 for the past few days. The rising 20-day exponential moving average ($11,938) and the relative strength index in the overbought zone suggest that bulls are in command.

The bulls had pushed the price above $13,214 today but they could not sustain the higher levels. This suggests that the bears have not yet thrown in the towel and are defending the $13,200 level.

However, as the trend is up, the bulls are likely to buy on dips to the breakout level of $12,460. Even if this support cracks, the bulls may again step in and buy at the 20-day EMA.

If the BTC/USD pair rebounds off either level, the bulls will once again try to push and sustain the price above $13,214. If they succeed, a rally to $14,000 could be on the cards.

This positive view will be negated if the bears sink the price below the 20-day EMA. Such a move will suggest that the current breakout was a bear trap.

*BTC/USD 4-hour chart. Source:* *TradingView*

The bears thwarted an attempt by the bulls to extend the uptrend today when they did not allow the bulls to sustain the price above $13,214. The sellers dragged the price down to the

immediate support at the 20-EMA on the 4-hour chart.

The bulls are currently attempting to keep the price above the 20-EMA but the bearish divergence on the RSI suggests that the momentum may be weakening.

A break below the 20-day EMA could result in a retest of $12,460, while a strong rebound off the current levels could resume the uptrend.

ETH/USD

Ether (ETH) broke above the $308–$396 range on Oct. 22, which suggests that the bulls have overpowered the bears. Although bears have stalled the up-move at $420, they have not been able to pull the price back below $396.

This suggests that the bulls are buying on dips to $400. The upsloping 20-day EMA ($383) and the RSI above 59 also indicate that bulls have the upper hand.

If the bulls can push the price above $421, the ETH/USD pair could start a rally that may challenge the Sep. 1 highs at $488.134.

This bullish view will be invalidated if the bears sink the pair back below $396 and the 20-day EMA at $383. Such a move could keep the pair range-bound for a few more days.

*ETH/USD 4-hour chart. Source:* *TradingView*

The pair has formed a flag pattern following the breakout above $400. The long tail on the retest of the breakout level suggests that bulls are accumulating at lower levels. A breakout above the flag will signal the possible start of a new uptrend.

Contrary to this assumption, if the bears sink the price below the flag, a drop to the $396–$400 zone is likely. If the pair once again rebounds off this support, the bulls will try to resume the uptrend. Conversely, the trend will favor the bears if the $388 support cracks.

XRP/USD

Although XRP has not yet started an uptrend, it has formed a possible inverse head and shoulders pattern that will complete when the price breaks out and closes above the overhead resistance at $0.26.

If that happens, the XRP/USD pair could pick up momentum and rally to $0.30. A sequence of higher highs and higher lows since the Sep. 23 lows indicate a minor advantage to the bulls.

If the pair rebounds off the 20-day EMA ($0.249) or the uptrend line, the bulls will try to drive the price above $0.26.

This positive view will be negated if the bears sink the price below the uptrend line. Such a move could result in a drop to $0.228409.

*XRP/USD 4-hour chart. Source:* *TradingView*

The failure of the pair to sustain above $0.26 could have resulted in the liquidation of long positions that pulled the price below the 20-EMA on the 4-hour chart.

Currently, the flattish 20-EMA and the RSI near the midpoint suggests a balance between supply and demand.

A breakout of $0.2635 could tilt the advantage in favor of the bulls while a break below the uptrend line may signal an upper hand to the bears.

LTC/USD

Litecoin (LTC) completed an inverse head and shoulders pattern when it broke out and closed above the overhead resistance at $51.50 on Oct. 21. This setup has a target objective of $61.50 and if this level is crossed, the up-move may extend to $64.

The rising 20-day EMA ($51.30) and the RSI near the overbought zone suggest that bulls have the upper hand.

Usually, after the breakout of a reversal pattern, the price dips to retest the breakout level. In this case, such a move could drag the price down to $51.50. If the price rebounds off this level, it suggests that the breakout is valid.

However, if the bears sink the LTC/USD pair below the 20-day EMA, it will suggest a lack of demand at higher levels. Therefore, it is a good strategy to wait for a rebound from a strong support before buying rather than enter on the way down.

*LTC/USD 4-hour chart. Source:* *TradingView*

The 20-EMA on the 4-hour chart is sloping up and the bulls have been buying the dip to this support in the past few days. This suggests that the sentiment is positive and the bulls view dips as a buying opportunity.

The RSI has been trading near the overbought zone, which also suggests that bulls are in control. A break below the 20-EMA will be the first sign that the momentum may be weakening. Such a move could result in a drop to $53 and then to $51.50.

XLM/USD

Stellar Lumens (XLM) has repeatedly risen above the overhead resistance at $0.084584 in the past few days but the bulls have not been able to capitalize on the move and start a new uptrend. This suggests that the bears are defending this resistance.

However, the upsloping 20-day EMA ($0.080) and the RSI in the positive territory suggests that bulls have the upper hand.

If the bulls can propel the price above the $0.084584–$0.087753 resistance, the XLM/USD pair will complete a rounding bottom pattern. This reversal setup has a target objective of $0.102327.

Contrary to this assumption, if the pair turns down from the current levels and breaks below the 20-day EMA, it will suggest that the bulls have squandered their advantage.

*XLM/USD 4-hour chart. Source:* *TradingView*

The pair broke below the support line of the triangle but the bears have not been able to capitalize on this move. The bulls are currently attempting to push the price back inside the triangle.

If they succeed, the pair could rally to the resistance line of the triangle. A breakout and close above the triangle might begin a new uptrend.

Contrary to this assumption, if the bears sustain the price below the support line of the triangle, the sentiment could weaken and the pair may drop to $0.079 and lower.

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

Top 5 cryptocurrencies to watch this week: BTC, ETH, XRP, LTC, XLM

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Ethereum Price Prediction: ETH/USD May Consolidates Between $400 and $420

October 24, 2020 by Blockchain Consultants

ETH Price Prediction – October 24

The daily chart reveals that ETH/USD is keeping its upward movement, while the sellers are frustrating the movement.

ETH/USD Market

Key Levels:

Resistance levels: $450, $460, $470

Support levels: $375, $365, $355

ETH/USD has been remarkably slow in its movement since October 22 when the coin touched the monthly high of $421. The lethargic movement follows a lower correction from highs around $417 and the failure to break above this level must have discouraged the bulls while giving Ethereum bears a gap to explore.

Where is ETH Price Going Next?

At the time of writing, ETH/USD is trading above the 9-day and 21-day moving averages with just a 1.06% gain at its current price of $413.87. This is around the price at which it has been consolidating following its recent rejection at $420 a couple of days ago. Meanwhile, a firm break above this level could spark buying pressure that may help to push its price up to a new high.

Moreover, for a backward movement, the market may be supported at levels of $400 and $390 and if the price falls below these levels, other supports are below the moving averages at $375, $365, and $355. But should in case the price exceeds the indicated level of $413, then, the resistance levels of $450, $460, and $470 may be visited. The technical indicator RSI (14) is moving around 65-level, suggesting a sideways movement.

Against Bitcoin, the market price is seen falling below the 9-day and 21-day moving averages and the technical indicator RSI (14) also confirms the bearish movement as the signal line moves below the 45-level.

Moreover, the market price may continue to decline if the coin remains below the moving averages and this may bring the price down to the support levels of 0.029 BTC, 0.028 BTC, and 0.027 BTC. Therefore, if ETH/BTC bulls can gather more effort and push the price above the moving averages; this could lead the coin to the resistance levels of 0.034 BTC, 0.035 BTC, and 0.036 BTC respectively.

Ethereum Price Prediction: ETH/USD May Consolidates Between $400 and $420

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Sharp Bitcoin price move brewing as BTC volatility falls to a 16-month low

October 17, 2020 by Blockchain Consultants

Bitcoin (BTC) options aggregate open interest has increased to $2 billion, which is 13% below the all-time high. Although the open interest is still heavily concentrated on Deribit exchange, the Chicago Mercantile Exchange (CME) has also reached $300 million.

In simple terms, options derivatives contracts allow investors to buy protection, either from the upside (call options) or downside (put options). Even though there are some more complex strategies, the mere existence of liquid options markets is a positive indicator.

For example, derivative contracts allow miners to stabilize their income which is tied to a cryptocurrency’s price. Arbitrage and market-making firms also utilize the instruments to hedge their trades. Ultimately, deeply liquid markets attract larger participants and increase their efficiency.

Implied volatility is a useful and primary metric that can be extracted from options pricing. Whenever traders perceive increased risk of larger price oscillations, the indicator will shift higher. The opposite occurs during periods when the price is flat or if there is expectation of milder price swings.

*3-month options contracts implied volatility. Source: Skew*

Volatility is commonly known as a fear indicator, but this is mostly a backward-looking metric. The 2019 spike seen on the above chart coincided with the $13,880 peak on June 26, followed by a sudden $1,400 decline. The more recent volatility spike from March 2020 happened after a 50% decline occurred in just 8 hours.

Indicators signal a wild price swing in the making

Periods of low volatility are catalysts for more substantial price movements as it signals that market makers and arbitrage desks are willing to sell protection on lower premiums.

This is because increasing derivatives open interest leads to more extensive liquidations when a sudden price change occurs.

Investors then need to shift their focus to futures markets to assess whether a potential storm is brewing. Increasing open interest denotes either a higher number of market participants or that larger positions are being created.

*Bitcoin futures contracts aggregate open interest. Source: Skew*

The current $4.2 billion in aggregate open interest might be modest compared to the August peak at $5.7 billion, but is still relevant.

A couple of reasons might be holding back a larger figure, including the current BitMEX CFTC charges and KuCoin’s $150 million hack.

High volatility is another critical factor holding back the open interest on Bitcoin derivatives.

Despite 57% being the lowest figure in the past 16 months, it still represents a sizable premium, especially for longer-term options. Both options and futures have a lot of synergy, as more advanced strategies combine both markets.

A buyer betting on a $14K strike for the March 21 expiry in 160 days must pay a 10% premium. Therefore, the price at expiry must reach $15,165 or 34% above the current $11,300.

*Apple (AAPL) 90-day implied volatility. Source:* *Alphaquerry.com*

As a comparison, Apple (AAPL) shares hold a 41% 3-month volatility. Although higher than the S&P 500’s 29%, the long-term impact versus Bitcoin’s 47% has striking effects. The same 34% upside for a March 2021 call option for AAPL shares has a 2.7% premium.

To put things in perspective, if an APPL share were priced at $11,300, this March 2021 option would cost $308. Meanwhile, the BTC one is trading at $1,150, which is almost four times more expensive.

Betting on $20K? Options might not be the best way

Although there is an implied cost to carrying a perpetual futures position for more extended periods, it hasn’t been burdensome. This is because the funding rate of perpetual futures is usually charged every 8 hours.

*Perpetual futures funding rate. Source: Digital Assets Data*

The funding rate has been oscillating between positive and negative for the past couple of months. This results in a net neutral impact on buyers (longs) and short sellers that might have been carrying open positions.

Due to its inherent high volatility, Bitcoin options might not be the optimal way to structure leveraged bets. The same $1,150 cost of the March 2021 option could be used to acquire Bitcoin futures using a 4x leverage. This would yield a $1,570 gain (136%) once Bitcoin reaches the same 34% upside required for the option break even.

The above example does not invalidate options use, especially when building strategies that include selling call or put options. One should keep in mind that options have a set expiry. Therefore if the desired price range occurs only the following day, it yields no gain at all.

For the bulls out there, unless there is a specific price range and time frame in mind, it seems for now sticking with perpetual futures is the best solution.

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

Sharp Bitcoin price move brewing as BTC volatility falls to a 16-month low

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Bitcoin Price Prediction: BTC/USD Faces Rejection at $10,400, Risks Sharp Decline to $9,300

September 24, 2020 by Blockchain Consultants

Bitcoin (BTC) Price Prediction – September 24, 2020
Bitcoin makes a gradual downward move. On September 21, the coin drops to $10,321 Low. It corrected upward and reached a high of $10,600. After retesting the recent high, it dropped to $10,152 low. In a nutshell, Bitcoin is making lower highs and Lower Lows.

Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000

Following the rejection at the $11,000 resistance, the selling pressure is ongoing. Yesterday, BTC/USD dropped to $10,152 and it corrected upward. After the breakdown on September 21, the BTC price has been falling in a bearish pattern. The price is rising to retest or break the $10,400 or $10,500 high. The coin will revisit the previous low at $9,800 if the current move faces rejection at the recent high.

Eventually, if the $9,800 is breached, the downtrend will resume. The crypto will fall and reach another low of $9,300. Conversely, if the price falls to the previous low and rebounds, it is a signal of a bullish resumption. Meanwhile, BTC is below the 50% range of the daily stochastic. It indicates that the coin is in a bearish momentum.

Institutional Investors Intend to Buy the Dip on Every Bitcoin Price
A crypto asset insurance company, Evertas, surveyed 50 institutional investors who are keen to invest in Bitcoin. The participants believe that regulations for the crypto market will improve and become clearer in the future. Also, they believe that the market will eventually become bigger, providing better liquidity, a quality that most institutional investors require.

The survey has it that the institutional investors plan to extensively increase their stakes in Bitcoin and other digital assets in the future. The survey is on investors who manage over $78 billion in assets across the United States and the United Kingdom. A standout response has it that 26% of participants believe that pension funds, insurers, family offices, and sovereign wealth funds have indicated to raise their stakes in crypto currency.

In the same vein, 32% of people believe hedge funds will augment their crypto holdings considerably. The survey found out that there are obstacles in the road to crypto services. Many participants are worried about the lack of insurance for digital assets, while others are concerned about the quality of custodial services, trading desks, reporting facilities, and the procedures of other companies working in the sector.

Meanwhile, Bitcoin is fluctuating above the $10,000 support. Yesterday, it reached a low of $10,100 before moving up. The Fibonacci tool analysis will hold if the price breaks the support level. On the September 3 downtrend, the retraced candle body tested the 78.6% Fibonacci extension level. It indicates that Bitcoin will fall and reach the 1.272 Fibonacci extension or $9,325.80 low.

Bitcoin Price Prediction: BTC/USD Faces Rejection at $10,400, Risks Sharp Decline to $9,300

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Bitcoin Price Prediction: BTC/USD Is Stable and Consolidates above $10,300 Support

September 22, 2020 by Blockchain Consultants

Bitcoin (BTC) Price Prediction – September 22, 2020
Since 24 hours ago, Bitcoin fell to the support at $10,321 and resumed consolidation above it. The king coin fluctuates between $10,300 and $10,500. After the breakdown, BTC is trading marginally above the current support.

Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000

On September 13, BTC rebounded above $10,200 as the price rally to $11,000 and $11,200. However, buyers could not sustain the upward move as the coin was repelled. The $11,000 and $11,200 are now strong resistances for BTC to overcome before attempting to resume the upside momentum and retest the $12,000 resistance. Buyers must break these resistances and reclaim them as support levels. Nevertheless, after BTC was repelled at the resistance, the price fell to $10.800 support.

After a retest at the $10,900 high, the downtrend resumed. The bears broke the $10,800 support again and plunged to a $10,300 low. As the market fell sharply to the previous lows there was no price rebound, rather BTC was trading marginally. However, BTC upward move may take some time as price fails to rebound at the recent lows. Nevertheless, the coin will have another chance as the bears will like to push BTC to the $10,000 or $9,800 lows. At that level, a strong bounce above those levels will signal the resumption of the uptrend.

Bitcoin Is Better Than Gold Says Tyler Winklevoss
Tyler Winklevoss is the co-founder of the Gemini crypto exchange. According to him, for over a decade Bitcoin has risen dramatically in price, surpassing numerous landmarks and price comparisons. Many have advocated that Bitcoin should be a store of value other than a transactional currency. In his social media post, Winklevoss added a chart putting Bitcoin and Gold against each other. Gold has a market cap of $9 trillion, while BTC has a market cap of $200 billion. Bitcoin took the win for scarcity, durability, portability, divisibility, storage, and counterfeit difficulty. In 2020, BTC has also recently gained further attention as a store of value in popular public opinion.

Nonetheless, in the meantime, Bitcoin is trading above $10,300. According to the Fibonacci tool, a retraced candle body tested the 78.6% Fibonacci retracement level on September 3 downtrend. This indicates that BTC will fall and reach a low of 1.272 Fibonacci extension level. At the 1.272 extension, the coin will initiate a reversal and return to the 78.6% retracement level where it originated.

Bitcoin Price Prediction: BTC/USD Is Stable and Consolidates above $10,300 Support

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MobileCoin, a cryptocurrency from the creator of Signal, just raised $30M for mobile payments

April 25, 2018 by Blockchain Consultants

A new privacy-centric cryptocurrency project with some big names on board just raised a round worth noting. On Tuesday, the team at MobileCoin announced that Binance Labs, the major blockchain incubator associated with the Binance exchange, led a $30 million round denominated in bitcoin and ether for the new cryptocurrency. MobileCoin will enjoy “priority consideration” for being listed on Binance as part of the relationship.

New cryptocurrency projects are a dime (or less) a dozen, but the legitimacy of an established name can make all the difference. Moxie Marlinspike, the founder of end-to-end encryption messaging app Signal and Open Whisper Systems, is one such name. As Wired reported in December, Marlinspike began working with MobileCoin as a technical advisor in August of 2017.

Marlinspike is joined by Joshua Goldbard, a general partner at hedge fund Crypto Lotus and MobileCoin technologist, and Shane Glynn, legal counsel, to help the company navigate the choppy waters of cryptocurrency regulation. Glynn has served since 2010 as senior product counsel at Google, though it’s not clear if he is leaving his longtime role for the new project.

In the MobileCoin whitepaper, published in December, the project’s creators describe its mission:

…Most attempts at building a compelling crypto-currency user experience unfortunately resort to trusting a third party service to manage keys and validate transactions. This largely sacrifices the primary benefits offered by crypto-currency to begin with.

MobileCoin is an effort to develop a fast, private, and easy-to-use cryptocurrency that can be deployed in resource constrained environments to users who aren’t equipped to reliably maintain secret keys over a long period of time, all without giving up control of funds to a payment processing service.

MobileCoin transactions will synchronize to the coin’s network using the Stellar Consensus Protocol for scalability and speed. The end product will emphasize user privacy and integration into mobile messaging apps, including WhatsApp and Signal — two apps that use Marlinspike’s end-to-end encrypted Signal Protocol.

“MobileCoin is designed so that a mobile messaging application like WhatsApp, Facebook Messenger, or Signal could integrate with a MobileCoin wallet,” the team described in its whitepaper.

Marlinspike is a rare sort of reverse tech celebrity, a figure who eschews both spotlight and Silicon Valley-style excess and has instead cultivated quiet respect in digital privacy and cryptography circles. That makes him an odd fit for the fraud-laden universe of empty multi-million-dollar ICOs with no product to speak of, but it also means that MobileCoin is probably worth paying attention to. At the very least, the prominent cryptographer’s new project should amuse anyone who’s complained about the digital currency world’s habit of using the term “crypto” as shorthand for “cryptocurrency.”

MobileCoin has funding and talent, but it’s still very early days for the nascent cryptocurrency. As an incubator, Binance Labs concentrates on pre-ICO projects and MobileCoin will use the funding to “build out [its] team and processes” as it develops its product.

“A mobile-first, user-friendly cryptocurrency, like MobileCoin, plays a critical role in driving mainstream cryptocurrency adoption,” Binance Labs said of the funding. “The MobileCoin team and Binance Labs share a common vision and we are proud to be a supporter of what they are doing.”

Along with the news, MobileCoin announced that it is recruiting a “core team” of engineers:

“Specifically, we are looking for those who have worked on large systems (greater than 10,000,000 daily active users) in a senior role who enjoy working on low-level code. Direct memory access is a critical part of our problem set.”

Given the legitimacy of Marlinspike’s best-known project and his reticence to attach his name to things, it’s not unreasonable to give MobileCoin the benefit of the doubt, even if aspects of its raison d’être remain unarticulated. Beyond the core question of why a new cryptocurrency needs to exist at all, MobileCoin will need to position itself as a compelling alternative to existing mainstream mobile payment services like Venmo and PayPal for normal users.

MobileCoin will also face the full slate of regulatory challenges, including fraud prevention, that plague other digital currency projects, though given its stealthy behavior and the fact that one-third of the three-member team listed on its website represents legal counsel, its founders are don’t appear to be charging in recklessly.

“This is a journey and we are excited to build a simple system for trusted payments,” Goldbard wrote in the announcement.

In the digital currency realm, too much style — think celeb-endorsed ICOs and endless press release hype cycles — can signal a lack of substance. The reverse can be true too, and in MobileCoin’s case, a modest mission could be a strong signal for a compelling product a bit further down the blockchain.

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LTC/USD

XLM/USD

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Where is ETH Price Going Next?

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