Crypto Guides, Knowledge & Insights

Traders know not to ‘go long’ when this classic trading pattern shows up

Buying an asset in a downtrend can be a risky maneuver because most investors struggle to spot reversals and as the trend deepens traders take on deep losses. In instances like these, being able to spot descending channel patterns can help traders avoid buying in a bearish trend.　　A “descending channel,” also known as a “bearish price channel” is formed by drawing two downward trendlines, parallel to each other, which confine the price action of the asset.Descending channel basics　　In a downtrend, the price action forms a series of lower highs and lower lows. A descending channel is drawn by joining the lower highs and the lower lows using parallel trendlines. The main trendline is drawn first where two or more lower highs are connected. Then a parallel line, also called the channel line, is drawn connecting the lower lows.　　The price action inside a descending channel continues to move south as bears sell on any relief rallies to the main trendline.　　The asset in the chart above is in a downtrend, forming lower highs and lower lows. The main trendline is drawn by joining two lower highs (marked as ellipses) while the parallel channel line is drawn by joining the two reaction lows.　　When

2021-09-05Deep Dive

Crypto Needs Regulation If It’s Going To Survive, Says SEC Boss

The Chairman of the Securities and Exchange Commission (SEC) has called for the crypto space to work with regulators. The Financial Times reported that Chairman Gary Gensler had asked Congress to empower his agency so they will be better able to govern the market. It is still not clear yet which agency has oversight of the cryptocurrency industry, as regulators mainly classify bitcoin as more of a commodity than it is a security.　　It is estimated that less than 10% of the world currently knows about crypto. But nevertheless, it is still a large enough number that has prompted regulators to start looking into ways of properly regulating these digital assets. It is no longer just retail investors who are trying to make some quick profit on highly volatile markets. Institutional investors have also thrown their hat in the ring, like in the case of Michael Saylors MicroStrategy.Finance Is About Trust　　Gensler believes that if the market is to grow, then it needs to embrace regulation. The SEC chairman explained that regulation would provide trust in the market, which is important if the market does not want to become irrelevant over time. “Finance is about trust, ultimately,” Gensler said. Genslers focus is

2021-09-05Deep Dive

BITCOIN INSTITUTIONS FOR THE BITCOIN AGE

If you care about freedom, economic empowerment, the environment or human flourishing in general, Bitcoin represents a profoundly powerful force for good. Sadly, however, this truth is far from self evident and can in fact be wholly counter-intuitive to the uninitiated. Combine this with the maelstrom of misinformation surrounding Bitcoin and the inherent complexity of the domains it affects and we Bitcoiners have a bit of a PR fiasco on our hands. Thus far, good ole fashioned fear and greed have been the most effective ways for people to cut through the aforementioned bramble in order to partake in this monetary revolution. Greed to partake in Number Go Up (NGU) technology and fear that the madness in the current system demands a reliable hedge.　　Might it be possible to appeal to some of humanity’s more noble impulses？ What about wonder, awe, transcendence or that feeling of participation in something much greater than oneself？ Such feelings are often experienced when encountering the great cathedrals and monuments that are the crowning achievements of civilizations, as well as while experiencing the grandeur and beauty of the natural world. I believe we can tap into this positive vein of human nature and convey Bitcoin’s finer

2021-09-05Deep Dive

AS GLOBAL INFLATION HEATS UP, BITCOIN SAVES THE DAY

The world is breathing a sigh of relief as things normalize after Covid-19 pandemic devastation. Governments are lifting lockdowns, restrictions are being relaxed, and the economy is slowly returning to a semblance of normality. As a result, consumer spending is on the rise.INFLATION IS ON THE RISE　　In April, CNBC reported that the Consumer Price Inflation in the U.S. increased 4.2% from the previous year. Additionally, in June, the consumer price index increased 5.4% from last year, the sharpest jump since the 2008 Global Financial Crisis. Excluding energy and food, the core CPI increased by 4.5, the biggest jump since 1991.　　Now, the big question is, what is causing the high inflation？INCREASING MONEY SUPPLY　　The Federal Reserve has resorted to flooding the economy with dollars to curb inflation. According to Forbes, the M2 money supply in April 2021 was $20.11 trillion, representing a 30% increase since January 2020. Too many dollars in the system reduces the currency value.　　In addition, there is pent-up demand — more money going after fewer products — that exacerbates the inflation problem. Remember, when the COVID-19 pandemic hit, some manufacturing plants were closed while others downsized their operation. As a result, the market has exhausted its stockpiles. Similarly, the

2021-09-04Deep Dive

New Crypto Investors, Funds, Products + More News

Investments news　　One in six surveyed Australians now own cryptocurrency, with the value of their holdings totalling USD 8bn, according to Finder Consumer Sentiment Trackers data, operated by Qualtrics. This is an ongoing nationally representative survey of 1,000 Australians each month. The most popular cryptocurrency is bitcoin (BTC) with 9% of respondents currently owning it; 8% own ethereum (ETH), 5% own dogecoin (DOGE), and 4% own bitcoin cash (BCH). 35% of respondents claim that Bitcoin will eventually be transacted more widely than traditional currency.　　Japanese financial conglomerate SBI Holdings is aiming to launch the country‘s first crypto fund by the end of November, Bloomberg reported. The fund could grow to several hundred million dollars invested in coins including bitcoin, ethereum, XRP, bitcoin cash, litecoin (LTC) and possibly others, said Tomoya Asakura, who oversees asset management for Japan’s biggest online brokerage. He added that investors may need to put in a minimum of roughly JPY 1m (USD 9,100) to JPY 3m (USD 27,300) and it will mainly be aimed at people who understand risks associated with cryptoassets.　　Regulated and licensed decentralized finance platform EQIFI has announced new products supporting the Tezos (XTZ) blockchain ecosystem. EQIFI will offer Tezos staking and borrowing services to its

2021-09-04Deep Dive

Ethereum price spikes to a 3-month high above $4,000

Ether (ETH) returned to $4,000 on Sept. 3 for the first time since May as a solid week of gains culminated in a major price milestone.　　Against month-to-date gains of $600, the pair reclaimed the historic level it had lost in the dramatic trend reversal that rocked the cryptocurrency market roughly three months ago.　　In so doing, Ether broke out of its three-month trading zone, with $4,025 just $350 away from all-time highs.　　In terms of weekly performance, Ether took third place out of the top 10 cryptocurrencies by market capitalization, behind Solanas SOL and Polkadots DOT tokens.　　Bitcoin (BTC) also capitalized on fresh strength of its own, rallying to a critical resistance at $51,000.How long can the good times last？　　Ethers successes have given bulls reason to rejoice, but the move has also produced some murmurs from critics.　　With gas fees still causing frustration for traders, there was a sense of disparity as even actress Reese Witherspoon announced that she had invested in Ether.　　Broadly, however, opinions converged that the final months of 2021 may mimick the rush to the finish of 2013 and 2017.　　“Regardless of when exactly it comes the next few months will probably be insane beyond what most of you can imagine, but

2021-09-04Deep Dive

Whales Shift More $4 Billion in Bitcoin, While BTC Declines to $48,500

According to data from Whale Alert, in the last several hours, large holders of cryptocurrencies, known as whales, have made six big transfers of Bitcoin, carrying 13,500 BTC on average. 　　Each of these transfers, as per the details provided by the popular crypto tracking service, have been made by the Binance exchange, and the funds were pushed between its internal wallets. The total amount of BTC transferred is 81,556 coins, equaling $4,026,607,298.80.　　On Sept. 2, the flagship cryptocurrency, Bitcoin, managed to break above the $50,000 level. Previously, this price mark was reached on Aug. 23 and, before that, back in mid-May. This time, however, BTC failed to fix above $50,000 and rolled back to the $48,400 area.

2021-09-03Deep Dive

Vitalik Buterin: “Ethereum Depends Less on Me Than Ever”

In a Thursday AMA on Twitter, Ethereum co-founder Vitalik Buterin answered some of the crypto communitys most important questions, sharing his thoughts on crypto privacy, game theory, protocol design, and what excites him most about the future.　　Buterin is Long Privacy, Short Added Sugar　　Ethereum inventor Vitalik Buterin took to Twitter Thursday and gave the 268 people he follows a chance to ask whatever theyd like, whether crypto or non-crypto related.　　Emin Gün Sirer, Cornell professor and founder of Ava Labs, the team behind Ethereum competitor Avalanche, asked Buterin about the most challenging lesson he learned through the Ethereum experience. Buterin answered:　　“People are harder to tightly coordinate in small groups than I expected. You can‘t just get everyone to sit around in a circle, see each other’s inherent goodness and get along, especially when huge incentive conflicts are at play.”　　When asked about his biggest non-technical regret concerning his Etheruem journey, Buterin mentioned “the whole ”8 cofounders“ thing” (and choosing them so quickly and nondiscriminately).　　Ethereum was co-founded by Mihai Alisie, Anthony Di Lorio, Jeffrey Wilcke, Charles Hoskinson, Amir Chetrit, Joseph Lubin, Gavin Wood, and Buterin himself. Of the eight, only Joseph Lubin, who founded Consensys, has remained closely involved with Ethereum, while many o

2021-09-03Deep Dive

Bitcoin (BTC) Price Prediction: BTC/USD Drops Sharply and Pulls Back as Bitcoin Retests $50K

After its rejection at the $50,000 overhead resistance, Bitcoin fluctuates between $48,000 and $49,000 price levels as Bitcoin retests $50K. In the first instance, BTCs price dropped sharply to the low of $48,200. Later it pulled back above $49,000. The bears would have sunk Bitcoin if it has broken below $48,000 support.　　Resistance Levels: $50,000, $51,000, $52,000　　Support Levels: $40,000, $39,000, $38,000　　In todays candlestick, BTC price plunged to $48,200 support and then pulled back. The pullback was above the $49,000 high. The candlestick is done with a small body and a long tail. The long candlestick tail describes that there is strong buying pressure above the $48,000 support. On the upside, the retest at the $50,000 high will continue as long as the $48,000 support holds. Besides, the bullish runs will continue if the BTC price closes above the $50,000 psychological price level. Besides, further rejection at the $50,000 high will cause Bitcoin to fall to the breakout level of $42,000 price level. Meanwhile, the RSI period 14 is at level 60. It indicates Bitcoin has room to rally on the upside. Bitcoin is trading at $49,440 at the time of writing.Bitcoin (BTC) Indicator Reading　　BTC/USD is above the 80% range of the

2021-09-03Deep Dive

JPMorgan Issues Major Bearish Warning About Altcoins

In its recent note cited by Business Insider, JPMorgan claims that the ongoing rally should be viewed as a major red flag by cryptocurrency market investors.　　The largest U.S. bank believes that the renewed altseason is a sign of market froth: “Cryptocurrency markets [are] looking frothy again.”　　JPMorgan points to the fact that alternative cryptocurrencies now comprise a third of the total market cap.　　For more blockchain news, please download WikiBit- the Global Blockchain Regulatory Inquiry APP.　　As reported by U.Today, Cardano surpassed the $3 price level for the first time earlier today. The cryptocurrency has been on a roll in anticipation of its smart contract launch, which has been scheduled for Sept. 12. ADA is up more than 1,500% in 2021.　　Solana recently broke into the CoinMarketCap top 10, soaring by more than 70% within just one week. The high-throughput “Ethereum killer,” is benefiting from the booming decentralized finance space and the mania surrounding non-fungible tokens (NFTs).　　JPMorgan sticks to the view that the current uptrend is driven by another retail mania instead of technical factors:　　The share of altcoins looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor mania rather than

2021-09-03Deep Dive

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