Bitcoin Finds Bottom at $4,000 as Price Awaits Post-China Breakou

Bitcoin Finds Bottom at $4,000 as Price Awaits Post-China Breakout

The bitcoin-US dollar exchange rate (BTC/USD) may have climbed back above $4,000, but it might be ready to push higher even though China uncertainty reigns supreme.

Following reports the country's regulators may be seeking to shut down domestic bitcoin exchanges, the bitcoin price fell to a low of $3,977 on the CoinDesk Bitcoin Price Index (BPI) this weekend. The rumor comes a week after the People's Bank of China (PBOC) banned initial coin offerings (ICO), suddenly outlawing the practice of creating and selling cryptocurrency to investors to finance startup projects.

The confusion about what might lie ahead cut short bitcoin's ascent on Friday following a repeated technical failure around $4,650 levels, and the subsequent sell-off was exacerbated by the bearish news out of China.

So far, Bloomberg and the Wall street Journal are out with the reports today, suggesting the ban will be limited to exchange-based trading and will not affect over-the-counter transactions.

Further, wires are reporting that the price of bitcoin could drop below $4,000 if China bans trading on continuous order books of the larger exchanges. China's biggest exchanges and traders across the globe are still waiting for official confirmation.

Investors aren't buying it

All in all, it's no wonder the trading is subdued this Monday morning.

However, bitcoin has been successful in defending the psychological support of $4,000 – meaning price action indicates investors do not think China would shut down bitcoin exchanges, or that if they did, it would only have a limited impact.

Furthermore, it appears any ban on exchange-based cryptocurrency trades will not extend to over-the-counter (OTC) transactions, meaning markets could still move.

As per Wall Street Journal, "A ban on crypto exchanges won't mean the end of trading in digital currencies."

No news is good news

It's been 72 hours since the news of a China exchange ban broke out, and we are yet to hear official confirmation or denial. The broader market sentiment remains positive, hence, no news (official confirmation or denial) will be taken as good news.

Thus, investors may start snapping up bitcoins at current levels, although in such a case the digital currency would take a big hit if China, following a prolonged silence, suddenly confirms the ban.

Daily chart

Bears may be salivating at the idea of a big sell-off following the breach of the rising trend line, although, what we have now is a symmetrical triangle pattern.

The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. Prices typically breakout in the direction of the prior trend, i.e. in BTC's case, an upside breakout will signal resumption of the rally from the June 16 low of $1,826.

One may feel tempted to bet on the direction of the breakout, however, it may be advisable to stay on the sidelines and only trade the breakout.

One reason is that the 5-day moving average and the 10-DMA moving average are now capping the upside in bitcoin. The 14-day RSI is dangerously close to being bearish.

  • A downside break [an end of the day close below the symmetrical triangle floor] would mean bitcoin has made a near-term top at $5,000. The subsequent move lower could be extended to $3,164 (200-day moving average).

  • A bullish move is seen gathering pace following a break above $4,500. The level marks the confluence of the rising trend line resistance and symmetrical triangle resistance. Fresh record highs could be seen if prices break above $4,500.

 

Author: Sep 11, 2017 at 16:00 UTC by Omkar Godbole

 

Posted By David Ogden Entrepreneur
David ogden Cryptocurrency Entrepreneur

David – http://markethive.com/david-ogden

Bitcoin Price Sinks Below $4,200 on China Uncertainty

Bitcoin Price Sinks Below $4,200 on China Uncertainty

Bitcoin Price Sinks Below $4,200 on China Uncertainty

Markets for bitcoin and other cryptocurrencies have fallen over the course of the day, following contested reports that regulators in China are looking to shut down the country's exchange ecosystem.

CoinDesk's Bitcoin Price Index (BPI) is currently at about $4,184, representing a nearly 10 percent decline since the start of the day's trading. Markets peaked today at $4,698.73, per the BPI, though prices began to tumble around 13:20 UTC.

Additional data from CoinMarketCap reveals that – perhaps unsurprisingly – China's top bitcoin exchanges are reporting some of the steepest price declines. The BTC/CNY market on OKCoin is at $3,650.71, while Huobi and BTCC are reporting prices of $3,657.84 and $3,656.57, respectively, at press time.

Other major bitcoin exchanges, including Bitfinex and Bistamp, are reporting current prices above the $4,100 level, according to data from BitcoinWisdom.

As reported earlier today, Chinese news source Caixin, citing unnamed sources, said that regulators are looking to shut down the exchanges. That decision, the newspaper claimed, has already been made and disseminated to other sources. Yet in the wake of that story, exchanges in China said they haven't receive any notices from the Chinese government, casting doubt on the veracity of the Caixin report.

Amidst the uncertainty, other cryptocurrency markets have seen notable declines as well. Ether prices are down more than 10 percent today, trading at around $295.93. Broad market declines have pushed the collective cryptocurrency market capitalization below $150 billion, after spending several days above the $160 billion level.

 

Sep 8, 2017 at 22:58 UTC by Stan Higgins

 

Posted By David Ogden Entrepreneur

David Ogden Cryptocurrency Entrepreneur

 

David – http://markethive.com/david-ogden

Bitcoin Breakout – Price Action Analysis Hints at Possible Pullback

Bitcoin Breakout - Price Action Analysis Hints at Possible Pullback

Bitcoin Breakout – Price Action Analysis Hints at Possible Pullback

The bitcoin price [BTC to US dollar exchange rate] fell to a two-week low of $3,900 on Tuesday, a market movement that represented the biggest decline for the asset since July.

Triggered by the sudden news from China that the country’s financial regulators would ban initial coin offerings, the decline has also called into question just how big the appetite is for a higher bitcoin price given its 700% year-over-year gains.

However, traders appear to be bullish on the idea it can rise back above $5,000, the all-time high it set last Friday. In fact, traders who missed the rally appear to be utilizing the dip to board the bitcoin freight train – over the last 48 hours, the digital currency has recovered more than 50% of the losses it suffered during the four day period from September 2–5.

At press time, the BTC traded at $4,620, according to the CoinDesk Bitcoin Price Index. Week-on-week, bitcoin is down 2.69%. On a monthly basis, the cryptocurrency is up 34.8%.

Still, while the sharp rally from the weekly low of $3,900 has triggered speculation bitcoin is aiming for the fresh record highs, technical studies say the recovery lacks substance.

Money Flow Index [MFI] does not support further gains

The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure. (MFI indicates rising or falling prices always through its own rise or fall.) If the MFI rises above the centre line [50], this is regarded as a buy signal.

Similarly, an intersection going down is regarded as a sell signal.

Daily chart

Bitcoin Breakout - Price Action Analysis Hints at Possible Pullback

The MFI index is pointing downwards and shows no signs of life despite the sharp recovery from the weekly low of $3,900.

The weakness in the MFI could be an indication that the technical recovery lacks substance, i.e. lacks buying pressure and could have been fuelled by unwinding [profit taking] on the shorts.

4-Hour chart

Bitcoin Breakout - Price Action Analysis Hints at Possible Pullback

The MFI is close to overbought levels. Typically, an MFI above 80 is considered overbought and MFI below 20 is considered oversold. These levels are often used to identify unsustainable price extremes.

Overbought levels alone are not enough to turn bearish. However, in BTC’s case, the overbought MFI on the 4-hour chart could be read as a signal that the recovery from the low of $3,900 has ended. This is because, the daily MFI is bearish as discussed above.

Furthermore, the decline from the record high of $5,000 was triggered by a bearish price-RSI divergence. A bearish price RSI divergence is formed when prices form higher highs while the oscillator – in this case an RSI – forms significantly lower highs.)

As such, bitcoin’s outlook remains bearish unless we break above $5,000 as such a move would signal the bearish price RSI divergence is no longer valid.

View

Daily chart

Bitcoin Breakout - Price Action Analysis Hints at Possible Pullback

Bullish factors

  • The rising trend line is intact and is likely to offer support at $4,265

Bearish factors

  • As discussed above, the MFI is not in favor of further gains in bitcoin
  • Bearish price-RSI divergence
  • Potential head and shoulders pattern

BTC is more likely to break below $4,265, in which case a lower highs pattern would be confirmed. An uptrend, which is a series of higher highs and higher lows, reverses into a downtrend by changing into a series of lower highs and lower lows.

Lower lows would be confirmed if prices break below the recent low of $4,900.

Also note that a lower highs would increase the odds of the prices forming a head and shoulders [H&S] bearish reversal pattern. The Head and shoulders is a reversal pattern that, when formed, signals the security [in this case bitcoin] is likely to move against the previous trend.

The H&S neckline [line drawn from the left shoulder bottom and right shoulder bottom] support is seen at $3980 levels. A break below the neckline level confirms bullish-to-bearish trend reversal.

Bullish scenario

A break above $4,640 could result in a rally towards $5000, although caution is advised as only a move above $5,000 would make the bearish price-RSI divergence invalid and shall revive the rally set in motion from the July low of $1,826.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Sep 7, 2017 at 14:20 UTC by Omkar Godbole

 

Posted By David Ogden Entrepreneur

David Ogden Cryptocurrency Entrepreneur

David – http://markethive.com/david-ogden

What you need to know about the latest Bitcoin boom

What you need to know about the latest Bitcoin boom

 

You may have noticed reports about Bitcoin’s value recently – its price is headed into the stratosphere.

The crypto-currency’s recent meteoric price rise over the summer has seen one Bitcoin go from being worth $1,500 in early May to more than $5,000 over the weekend, before dropping to $4,654 at the time of publication.

And that has got all kinds of people interested – people like Andrew Beckwith, a DJ who goes by the name Supersede. “I play restaurants, lounges, nightclubs, corporate events,” he says.

But he also invests. Beckwith has just taken his first step into the world of crypto-currencies, having converted $100 into Bitcoin.

“I don’t know how far it’s going to grow,” he explains, “but if something is growing at hundreds of per cent, that’s a pretty valuable return.”

Bitcoin is notorious for its volatility, but the recent peaks are unprecedented. In late 2013 its value jumped from around $100 to $1,000 – a bigger percentage increase – but it is worth more than four times that today.

“Recently there’s been a lot more talk in the media and others have been investing,” explains Kiran Varughese, another amateur investor, who works for an elevator company in Dubai.


The notoriously volatile crypto-currency has been making headlines with its skyrocketing value, but some believe it’s a bubble driven by speculation (Credit: Getty Images)

A friend’s experiments with Bitcoin piqued his curiosity so he clubbed together with another pal to invest $1,000 in August. If they lose it, he says they won’t be too worried – the potential for a big return within the next few years is too tantalising for Varughese to resist.

But are investors like Varughese and Beckwith taking too much of a risk by buying into Bitcoin, and other crypto-currencies like Ethereum, Litecoin or Dash? Is there something about these digital currencies that underpins their soaring prices or are they simply subject to whims in the market that can make fortunes but also devastate them?

While the market capitalisation of all crypto-currencies now stands at $150 billion, they still occupy a strange space in the world of finance.

“Every year Bitcoin continues to exist is something to take note of,” says Garrick Hileman, a research fellow at the Cambridge Centre for Alternative Finance at the University of Cambridge. “It’s a significant achievement for Bitcoin to have survived the many setbacks and challenges that it has faced.”

One of these challenges occurred recently when Bitcoin split in two. It happened after the Bitcoin community became divided over how to allow more transactions to be processed with the currency. Because Bitcoin has no over-arching authority that controls it, any decision to alter the system that underpins it needed to gather enough support from Bitcoin users to go ahead. The system itself is called the blockchain – a huge digital ledger that records every single Bitcoin transaction in history.


Mining Bitcoin takes time and computer processing power, so it’s often done in massive farms such as this converted warehouse in Moscow, Russia (Credit: Getty Images)

As computers on the Bitcoin network verify transactions, “blocks” of data are added to the ledger, storing this information. Computers that do this work receive a small sum of bitcoins as a reward – this is the process known as mining. Every single computer on the network has a copy of the blockchain and their copy of it is constantly updated.

But until recently, Bitcoin blocks were limited in size to a megabyte every 10 minutes, meaning that the rate at which the blockchain could grow was capped. In early August, a new version of the crypto-currency – Bitcoin Cash – was mined for the first time. Its blocks can be up to eight megabytes in size.

Some believe the smooth transition through this “fork” without any technical disasters has contributed to renewed confidence in Bitcoin, in turn helping to pump the price up. One “coin” of Bitcoin Cash is worth less, around $630 today, but that’s up $200 since its inception a month ago.

Another fork to upgrade the block size further is expected in November and if successful, it might have a similar impact on Bitcoin’s buoyant price.

But “currencies” like Bitcoin aren’t really playing the role of a traditional currency at the moment, says Vili Lehdonvirta, an economic sociologist at the Oxford Internet Institute, which is part of the University of Oxford.

“When I called up a restaurant in Helsinki earlier this year to ask if they accept Bitcoin, the response was that they tried it a few years ago, nobody ever used it, and thus they no longer accept it,” he explains.


Most retailers don’t accept the crypto-currency (Credit: Getty Images)

BBC Capital contacted 10 businesses in London that have advertised an ability to accept Bitcoin in the past. Four of them said they had stopped accepting and two that did accept them reported hardly ever processing such payments.

Instead, it appears many people are simply speculating on Bitcoin – investing in what is a relatively high-risk asset in the hope of a short-term gain in profit. But lucrative outcomes are by no means guaranteed – and many still think that Bitcoin is just a bubble.

In the short-term there may be various reasons why people are buying in while the price is buoyant. Some may like investing in a currency unconnected to nation states, suggests Hileman. It could be seen as good insulation against uncertain political developments that can cause traditional currencies to plummet dramatically – as happened to the British pound in the aftermath of the Brexit vote. Volatile international disputes, such as those involving North Korea, could be driving people to put their money elsewhere.


The pound dropped sharply after Brexit – since Bitcoin is not tied to any one nation-state, it’s less affected by large political events (Credit: Getty Images)

“If you’re in South Korea and you’re concerned about a geopolitical event, do you trade in the US dollar?” asks Hileman. “Maybe that’s not a great idea because the US will be involved, as will China and Japan, so it’s not surprising to see people look for alternative currencies,” he says.

Applied cryptography consultant and Bitcoin-watcher Peter Todd says some are also attracted by Bitcoin’s independence for broader political reasons, too.

In an uncertain world, people’s financial freedom is sometimes limited by their governments. Take India, which recently tried to curb public investments in gold as this was harming the nation’s economy. Bitcoin is a global entity, no one government can fiddle with it – although there are countries where trading it is illegal.

Still, crypto-currencies remain associated with plenty of risks that go beyond their volatility. Many people store their bitcoins in online exchanges and should these be hacked or go bust, which has happened more than once, then the money is often lost forever.

With all the technical ups and downs of crypto-currencies – their changes and potential to split into new currencies for example – there is also a significant degree of complexity that can leave less informed investors bewildered.


MtGox, a Bitcoin exchange based in Tokyo, collapsed after losing nearly $500m in Bitcoin to what it says was a hack attack (Credit: Getty Images)

A new area of excitement, known as initial coin offerings (ICOs), are also beginning to worry some experts. ICOs allow owners of crypto-currencies to invest in fledgling companies, with many using Ethereum as their digital coin of choice. However, ICOs have already been associated with a number of scams and hacks, and China just banned them, calling ICOs 'illegal fundraising'.

“I think the main thing we’re seeing in ICOs is straight-up fraud,” says Todd. He is concerned about efforts by regulators to clamp down on this because such an approach could backfire and encourage scammers to become more sophisticated.

“It’s when things look legit that they get dangerous,” he says, pointing out that a few years ago Bitcoin and other digital tokens had more of a “Wild West” feel to them, which perhaps meant people were less likely to be duped since scams were crude and easy to spot. As more and more investors get involved in crypto-currencies, scams can get slicker and the natural wariness that can keep people cautious may also diminish.

Bitcoin and other crypto-currencies are gradually cementing their stated position – providing a radical new alternative to the investment options that existed before them. But there is no certainty as to how this massive experiment will play out. Though when did that ever stop hopeful investors taking a punt?

 

By Chris Baraniuk
7 September 2017

This story was produced under the BBC's guidelines for financial journalism. A full version of those guidelines can be found at bbc.co.uk/guidelines.

 

Posted by David Ogden Entrepreneur

David – http://markethive.com/david-ogden

Bitcoin Price Nears $5,000; YTD Growth Exceeds 400%

Bitcoin Price Nears $5,000; YTD Growth Exceeds 400%

Bitcoin Price Nears $5,000; YTD Growth Exceeds 400%

2017 has been a breakout year for bitcoin and the cryptocurrency ecosystem as a whole. Now, as the bitcoin price approaches $5,000, it’s an excellent time to look back at the trials and triumphs that have contributed to this 400% YTD rally.

Global Adoption & the Road to $5,000

Bitcoin rang in the new year by crossing $1,000 for the first time since the 2013 melt-up, and the Financial Times promptly called it a pyramid scheme that would soon collapse to zero. The bitcoin price held at this level for the next three months, leading critics like Gizmodo writer Michael Nunez to complain that it “refuses to just die already.”

Of course, bitcoin obituaries like these ignored bitcoin’s increasing global expansion. There was once a time when bitcoin risked becoming a Western phenomenon, excluding the majority of the world’s population. Today, that could not be further from the truth. Bitcoin adoption has exploded in Asia, and the highest-volume cryptocurrency exchange is located in South Korea. Bitcoin has also made inroads into emerging markets such as Africa and India.

This year has also seen Japan embrace bitcoin more rapidly than perhaps any other nation. Toward the beginning of the year, Japan terminated its crippling 8% bitcoin consumption tax, and before long major retailers were accepting bitcoin payments. By the end of the year, analysts predict that as many as 300,000 Japanese businesses will accept bitcoin.

By late April, the crypto market advance had begun to pick up steam, leading to a market cap explosion in May and June. On May 20, the bitcoin price broke through $2,000. Less than a month later, it crossed $3,000 on several exchanges for the first time.

Bitcoin Price Nears $5,000; YTD Growth Exceeds 400%

YTD Bitcoin Price Chart from CoinMarketCap

Despite this bull run, bitcoin almost lost its status as the largest cryptocurrency by market cap. About this time, ethereum came within $10 billion of bitcoin’s market cap, making it seem inevitable that there would be a “Flippening” between the two cryptocurrencies. MarketWatch columnist Brett Arends, meanwhile, wrote that both cryptocurrencies were “complete garbage.” However, the Flippening never came. The markets took a bearish turn following the June 26 “Monday Massacre,” and bitcoin consolidated its position as the dominant cryptocurrency.

Eventually, the markets recovered. After falling as low as $1,900 during mid-July, the bitcoin price reversed course toward the end of the month, initiating the record rally that has carried bitcoin to the brink of $5,000.
 

Bitcoin Overcomes UAHF and PBoC Squeeze

The most astonishing aspect of the bitcoin price’s 2017 performance is not its 400% climb, but rather the trials it overcame to get there. Aside from the incessant claims by mainstream media analysts that bitcoin is a bubble, bitcoin faced adverse events that threatened its future. One of these was increasing regulation. Bitcoin has faced regulation since shortly after its inception, but its 2017 bull run has intensified government interest in cryptocurrency. As early as January, the People’s Bank of China (PBoc)–China’s central bank–began putting a regulatory squeeze on bitcoin exchanges in response to “abnormal [bitcoin] price fluctuations.” Exchanges shut their doors as the PBoC began conducting on-site inspections. However, the PBoC ultimately allowed Chinese bitcoin exchanges to continue their operations, albeit with strict supervision.

More recently, bitcoin survived the contentious bitcoin cash hard fork that split the bitcoin network into two different blockchains. Rather than lead the bitcoin price into decline, the hard fork actually appeared to build confidence in bitcoin’s ability to survive a serious community divide, and bitcoin soared more than 75% in the month that followed.

Scaling With SegWit

The bitcoin cash hard fork was caused by the debate about the best way to scale the bitcoin network. Bitcoin cash proponents, claiming to follow Satoshi’s vision, believed that raising the block size was the best way to ensure bitcoin remained a viable P2P transaction vehicle rather than just a settlement layer. Bitcoin Core, however, adopted Segregated Witness (SegWit), a scaling and transaction malleability fix that also facilitates the creation of Lightning Networks. SegWit was activated earlier this month, which should soon cause bitcoin transaction fees–which reached above $8 this month–to finally decrease to more acceptable levels.

SegWit2x and the Road Ahead

Of course, SegWit activation did not put the scaling debate to rest. Earlier this year, a group of prominent bitcoin companies and personalities signed the New York Agreement (NYA), which proposed a hard fork to the bitcoin protocol. SegWit2x, as the proposal is known, called for a block size increase in addition to SegWit activation. The proposal received near-universal support from miners, but Bitcoin Core developers have vociferously opposed it. Relations between Core and SegWit2x supporters have worsened over the intervening months, and several companies have reversed their NYA support. Despite Core opposition, SegWit2x proponents say they will proceed with the hard fork in November, creating a potentially-chaotic situation in which two blockchains will fight to be the “real bitcoin”.

Nevertheless, investors remain bullish on bitcoin, and the bitcoin price’s triumphant march toward $5,000 continue

 

Author: Josiah Wilmoth on 01/09/2017

 

Posted by David Ogden Entrepreneur

David Ogden Cryptocurrency Entrepreneur

David – http://markethive.com/david-ogden

Get started in cryptocurrency with this beginner’s directory

Get started in cryptocurrency with this beginner's directory

Get started in cryptocurrency with this beginner’s directory

The wonderful world of cryptocurrency has grown from a budding idea to a full-fledged market bonanza. Hopefully you’re savvy to the terminology and ready to start putting your money where your technology is. This directory should provide you with the basic starting points to begin building your fortune in digital money.

(Don’t forget that cryptocurrency is an investment, and you shouldn’t trust your finances to an article you read on a news-source. We strongly advise contacting a financial adviser before risking your money.)

Bitcoin was founded in 2009. It represented the first decentralized cryptocurrency. It’s the oldest, and, as of August 17th it reached an all-time high of over $4,500. Just six months prior it was worth about $900. While you’re trying to wrap your head around that, keep in mind Bitcoin isn’t the only cryptocurrency.

How many cryptocurrency offerings are there? Over 850 are currently listed on CoinMarketCap. Before you decide which one to blow your speculation money on, make sure you have all your crypto-ducks in a row.

You need a wallet

Before you can buy into an initial coin offering (ICO), purchase cryptocurrency, or execute smart-contracts you’ll need a wallet. There are hardware wallets and software wallets; for now we’re only going to worry about software wallets.

Here’s a few to start you off:

  1. Blockchain – possibly the most popular cryptocurrency wallet

  2. Electrium – has been around since 2011

  3. Gemini – boasts regulation by New York State Department of Financial Services (NYSDFS).

Buy an established coin

You don’t have to start off trying to predict which ICO is the best investment. There are numerous ways to aquire cryptocurrency from an established coin. Here are some of our favorite coins to get your research started:

  1. Bitcoin – The big one. If you’ve got $4,000+ to fork out for a Bitcoin you can get in on the over/under $5,000 action. For what it’s worth there are experts on both sides of that fence.

  2. Ethereum – Things get a little more complicated here, but worth listing as a currency simply because ETH is second only to Bitcoin in popularity.

  3. Litecoin – Launched in 2011 billing itself the “silver” to Bitcoin’s “gold”.

  4. Bitcoin Cash – Bitcoin managed to fork itself and now there’s this.

  5. Siacoin – Sometimes cryptocurrency comes in the form of cloud storage.

  6. World Coin Index — provides a great listing to check valuations out

  7. Coin Market Cap — another listing of coin valuations

Or just find an ICO and dive in

Which is easier said than done. It seems like there’s an ICO for everything. We’re hesitant to even list any here, simply because you should research an ICO much more in-depth than would be prudent for the purpose of this directory. However, we’re happy to provide some links that might help:

  1. Coin Schedule – provides analysis on current and upcoming ICOs

  2. Smith and Crown – A curated list of ICOs

  3. ICO List – One of the most popular international sites concerning ICOs

It’s time to hit the exchange

Depending on which coin you’re investing in you’ll either visit an exchange, or use whatever method of purchase or trade the offering requires. You may be able to set up an online store that accepts Bitcoin or ETH, for example. Or perhaps you know someone who will sell you some. One of the most common ways to get cryptocurrency is to visit an exchange.

  1. Coinbase – probably the most popular exchange there is

  2. Kraken – you’ll find this one is well-reviewed by insiders

  3. Bittrex – US based and supports nearly 200 cryptocurrencies

  4. Buy Bitcoin Worldwide— provides country-specific exchange information

The above links should provide you with enough information to get you started on a path to dominate the cryptocurrency markets and become rich beyond fantasy. Or you could lose a bunch of money.

by TRISTAN GREENE — 13 hours ago in EVERGREEN

 

Posted by David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Bitcoin Price to Reach $6,000 in 2018, Predicts Wall Street Strategist

Bitcoin Price to Reach $6,000 in 2018, Predicts Wall Street Strategist

Bitcoin Price to Reach $6,000 in 2018, Predicts Wall Street Strategist

 

The bitcoin price pulled back from its all-time high this weekend, weighed down by a bitcoin cash price surge and disagreements over the SegWit2x scaling proposal.

Bitcoin Price to Reach $6,000 in 2018, Predicts Wall Street Strategist

However, Wall Street strategist Tom Lee believes that the long-term prospects of the bitcoin price remain quite promising. As CNBC reports, Lee–who co-founded Fundstrat Global Advisors and is bearish on the outlook for the stock market–wrote a note to clients establishing a mid-2018 bitcoin price target of $6,000. He also forecasts that it could rise as high as $25,000 by 2022.
 

Bitcoin Price to Reach $6,000 in 2018

He says several factors will fuel bitcoin’s continued rise to $6,000, including a 50% increase public adoption of bitcoin as a store of value and mainstream financial investments in cryptocurrency:

We see bitcoin as gaining from institutional sponsorship, improving transaction platforms and ultimately, greater public adoption.

Pointing to LedgerX and CBOE Holdings, which have both receive regulatory approval, Lee says the availability of cryptocurrency options and futures trading will increase overall bitcoin transaction volume.

This implies significant rise in institutional holdings of Bitcoin in next 6-8 months given recent approvals….No doubt, this will lead to an increase in overall transaction volumes for bitcoin.

 

Central Banks Could Acquire Bitcoin

Lee’s comments echo a recent Goldman Sachs note, which advised that it is “getting harder” for institutional investors to ignore cryptocurrencies. He adds that even central banks may begin acquiring bitcoin if it reaches a market cap of $500 billion, which will happen if the bitcoin price reaches about $30,000.

While one may say this is preposterous to say central banks would own bitcoin — we believe that Central banks would view crypto currencies differently if Bitcoin’s aggregate value exceeded $500 billion

That said, Lee anticipates short-term volatility for the bitcoin price heading into late August of this year.

Short-term traders should be prepared for another volatile consolidation period heading into late August given the XBT is nearing our next resistance levels with daily/short-term momentum becoming overbought.

 

Other Bitcoin Price Forecasts

A number of financial analysts have issued bitcoin price forecasts. Sheba Jafari, a chief technical analyst at Goldman Sachs, believes the bitcoin price will near $5,000 but crash as low as $2,221 as its fifth wave ends. Stock researcher Ronnie Moas believes bitcoin will beat Lee’s target and cross $7,500 in 2018, and one Harvard academic believes a unique application of Moore’s Law could result in bitcoin breaking through $100,000 in 2021.

 

Author: Josiah Willmoth on 19/08/2017

 

Posted By David Ogden
                 Entrepreneur

 

David – http://markethive.com/david-ogden

Bitcoin Surging Demand Amidst Economic Uncertainty

Bitcoin Surging Demand Amidst Economic Uncertainty

Bitcoin Surging Demand Amidst Economic Uncertainty

After a strong week-long rally, bitcoin price has achieved yet another all-time high at $4,473, as demand from institutional investors and traders continue to rise amidst economic uncertainty and global markets instability.

Bitcoin Surging Demand Amidst Economic Uncertainty

Some regions including China demonstrated a meteoric increase in demand towards bitcoin, with bitcoin price surpassing the 30,000 Chinese yuan for the first time in history, which is equivalent to $4,495.

 

In previous coverages, Cryptocoinsnews noted that many analysts from prominent financial institutions including Goldman Sachs and JPMorgan believe institutional and retail investors are shifting away from stocks and gold to bitcoin. Wall Street strategist Tom Lee said on CNBC that bitcoin will likely become the best performing asset and currency by the end of 2017. With the recent rise in bitcoin price, the prediction of Lee has become more realistic, as even with a 50 percent decline in value, bitcoin will still remain as the best performing asset in a yearly basis.
 

Earlier this morning, Morgan Stanley, the $89 billion investment banking company which manages over $1.3 trillion in assets, explained that an increasing number of investors, professional traders and portfolio managers have started to prefer bitcoin over gold for various reasons. As a start, despite being considered as a safe haven asset and long-term investment, as a digital currency, bitcoin is highly portable and liquid.

Over the past two years, overseas bitcoin exchange markets have matured significantly through the implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, legalization of bitcoin by many governments and rapid increase in adoption by general consumers. More to that, large-scale financial institutions and leading bitcoin exchanges have started to target institutional investors by drastically improving liquidity of bitcoin.

 

In a note to its investors, Morgan Stanley equity strategist Tom Price stated:
 

The popular view that this immature currency is superior to gold as a hedge against inflation/uncertainty, still needs to be tested.
 

More importantly, Price emphasized that many investors see bitcoin as a better safe haven asset and store of value than gold in several aspects. He added:
 

“Some claim that the protocol limiting bitcoin’s supply growth rate, underpins its value, But if bitcoin is successful long term, we should continue to see competitor cryptocurrencies and market strategies emerge to exploit the new economic rent — a bearish risk for bitcoin’s price. [Bitcoin is] the latest money to offer gold’s long standing capabilities plus some other unique benefits. While it too may somehow undermine gold’s demand outlook, the rate/scale of the shift depends on the willingness of investors to engage bitcoin/cryptocurrencies.”

 

Yesterday, on August 16, when bitcoin price abruptly decreased from around $4,400 to $4,050 during a minor correction, investors and traders expected a steady mid-term decline in value. However, in a relatively short period of time, bitcoin price recovered beyond its previous peak and established a new all-time high, establishing a strong momentum for the week and upcoming months.

 

If the current levels and demand can be sustained throughout the week, the $5,000 target of Goldman Sachs, JPMorgan and other prominent analysts including RT’s Max Keiser will become increasingly likely.

 

But, bitcoin price has since declined after a minor setback, from $4,473 to $4,300. It is already demonstrating indicators of recovery, as bitcoin price recovered to $4,330.
 

Originator and publisher:
Samburaj Das on 18/08/2017

 

Posted By David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Bitcoin Price in Tulip Bubble, Claims BBC Tech Correspondent

Bitcoin Price in Tulip Bubble, Claims BBC Tech Correspondent

Bitcoin Price in Tulip Bubble, Claims BBC Tech Correspondent

The bitcoin price has set numerous records in 2017, prompting a wave of critics to forecast that “The bubble will burst!”.

On August 14, BBC technology correspondent Rory Cellan-Jones became the latest in a long line of mainstream financial analysts and reporters to compare the rise of bitcoin to 17th-century Dutch Tulipmania. As he stated on Twitter:

“Yes, tulip bulbs are now selling for $4000 and we were told that was a bubble when they hit $100..

10:07 AM – Aug 14, 2017”
 

The Tulip Bubble

The tulip bubble, which took place from 1634-1637, was sparked when a non-fatal virus infiltrated the Dutch tulip crop. This virus resulted in a variety of beautiful petal patterns, and tulips–which were already rare in Holland–grew in value according to the scarcity of their patterns.

Demand exceeded supply, causing prices to skyrocket and speculators to begin buying tulip bulbs as investments. Tulipmania became so pervasive that people even traded their homes and life savings for tulip bulbs. At one point, tulip prices increased twenty-fold in a single month.

Eventually, early investors began selling their tulips to secure their profits, creating a chain reaction of decreasing tulip prices as people rushed to sell before the price went down further. Soon, people began to panic sell, causing the price to crash and the Dutch economy to sink into a depression.

 

Is Bitcoin a Digital Tulip Bulb?

Tulipmania is the quintessential example of a price bubble, and cryptocurrency critics have lobbed this analogy at bitcoin for years. Whenever the bitcoin price breaks through a new barrier, they rush to explain to mainstream news outlets that the bubble is going to burst, killing bitcoin once and for all.

The implication behind this analogy is that, like 17th-century Dutch tulip bulbs, bitcoin has little or no inherent value and derives its price entirely from speculation. It is true that bitcoin, like any asset, has experienced price bubbles in the past and will continue to see them in the future. It is also true that some people invest in bitcoin on speculation alone, without understanding or believing in the potential of its underlying technology.

But where the tulip bulb comparison diverges from reality is that bitcoin has recovered from multiple market corrections, despite naysayers’ predictions to the contrary. Moreover, what critics disingenuously refuse to admit is that cryptocurrency has a myriad of use cases, and more are being developed every day. Tulip bulbs have a limited, well-defined use case, and that use case did not justify its rapid (and localized) price increase. Bitcoin adoption, on the contrary, is a global phenomenon fueled by a truly revolutionary technology.
 

David Ogden
Entrepreneur

DAvid Ogden Cryptocurrency Entrpreneur

 

Author: Josiah Wilmoth

David – http://markethive.com/david-ogden

U.K. Authorities look to Deem Bitcoin as Cash to Facilitate Cryptocurrency Seizures

U.K. Authorities look to Deem Bitcoin as Cash to Facilitate Cryptocurrency Seizures

U.K. Authorities look to Deem Bitcoin as Cash to Facilitate Cryptocurrency Seizures

A new report, published by the N8 Policing Research Partnership, states that law enforcement faces various challenges when it comes to cryptocurrencies and that, although these challenges are mostly driven by the lack of knowledge and tools, they would be lessened if bitcoin were categorized as cash. This would facilitate seizures in the cryptocurrency, which the report states facilitates money laundering and criminal activities.

The report starts by associating bitcoin with cybercrime, using WannaCry’s global ransomware campaign and its effects on the NHS as an example of how bitcoin facilitates criminal activities. According to the report, cryptocurrencies facilitate criminal transactions and crimes. It reads:

“Cryptocurrencies (mainly Bitcoin) have become a popular choice of criminals. They are facilitating criminal transactions and also crimes such as money laundering, extortion (following data breaches), blackmail (the threat of DDOS attacks) and fraud.”

It even states that cryptocurrencies such as monero and bitcoin have become a popular choice for criminals, adding that according to Europol 3% of all money laundering globally is now done through cryptocurrencies. Notably, back in July a report from the European Commission to the European Parliament and Council found that terrorists and criminals are rarely using cryptocurrencies, although it added that the lack of regulations pose the threat of them being misused.

Notably, N8’s report recommends the U.K. Home Office, an organization that oversees law enforcement agencies in the country, to classify bitcoin as a form of cash, to make it easier to seize the cryptocurrency. It states:

“A recommendation has also been made to the Home Office regarding a potential legislative amendment to categorise bitcoin as cash for the purpose of cash seizure legislation”

Moreover, as a result of its research, it found that U.K. law enforcement has significant knowledge gaps when it comes to cryptocurrencies, and as such a training program is recommended to improve development.

The report also says that bitcoin’s underlying technology, blockchain technology, poses “some potentially interesting opportunities for investigators”, and therefore it is essential to adopt a strategic training approach to law enforcement in the country.
 

How researchers got to their conclusion

As part of the report two scenarios were conducted: one in which researchers purchased items from dark web marketplaces using bitcoin and monero, and then executed a mock warrant, and a sextortion scenario in which officers analyzed transaction data on the blockchain to then execute a mock warrant and seize bitcoins.

It found that the lack of regulations for bitcoin ATMs in the U.K. is a vulnerability that can help criminals launder money. Regarding exchanges, it noted that these have been attempting to comply with international money laundering standards, conducting KYC (Know Your Customer) checks. It adds that further industry collaboration is needed as criminals can still bypass these checks.

Finally, the report notes that a number of tools are available for law enforcement to trace bitcoin transactions in the blockchain, but adds that these require knowledge and expertise. Some companies offer user-friendly alternatives, but access to these alternatives is limited in the U.K.

Whether the U.K. Home Office will approve legislation that will categorize bitcoin as cash is unclear.

 

David Ogden
Entrepreneur

David Ogden Cryptocurrency Entrepreneur

 

Author: Francisco Memoria

 

David – http://markethive.com/david-ogden