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Bitcoin Price Drop to Key $9K Support Could Place the Uptrend in Peril

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The price of Bitcoin (BTC) was unable to break through the resistance zone at $10,000 and corrected nearly 10% in a day. The drop down occurred on the same day that U.S. equity markets saw a substantial retracement. 

These moves automatically made investors and traders fearful of further continuation of this correlation. However, is the fear that Bitcoin price will continue to drop if stocks correct further warranted, or was the BTC correction overdue after multiple rejections at $10,000?

Crypto market daily performance

Crypto market daily performance. Source: Coin360

Rejection at $10K forces BTC to lower support levels

BTC USD 1-day chart

BTC USD 1-day chart. Source: TradingView

The BTC-USD daily chart is showing a clear rejection at the $10,000 resistance, after which a substantial drop occurred.

However, the primary trend is still valid and it can be classified as an uptrend. The simple reasoning is that Bitcoin has been making higher lows since the heavy crash to $3,700 on March 12th.

Such an uptrend is signaled through higher lows and support/resistance flips. In this case, the most recent higher low is the level at $8,600. In order for the market to hold it’s essential to keep the upward momentum going through another higher low above $8,600.

In this scenario, the primary area to hold is the $9,050-$9,300 area as it has already provided support after the most recent drop. 

This is significant because it’s a crucial area with many pivotal tests in the previous year. For example, the $9,050-$9,300 area provided support throughout the summer of 2019.

XBT USD 1-day chart

XBT USD 1-day chart. Source: TradingView

In that sense, the green zone between $9,050-$9,300 can be marked as crucial for direction. If Bitcoin price drops below the green zone and confirms it as resistance (through a bearish rejection), the market is likely in for a more protracted retracement towards the mid $7,000s. 

However, if the price sustains this area as support, it’s likely to see bullish continuation. 

What led to the $800 crash? 

BTC USD 4-hour chart

BTC USD 4-hour chart. Source: TradingView

The 4-hour chart clearly shows what occurred during the previous drop. The price of Bitcoin was acting inside a very narrow range, through which such compression usually ends with volatility.

Typically, when the compression period ends a ‘fake-out’ takes place before the real move occurs. 

The 4-hour chart shows that Bitcoin tried to break above $9,850, but instantly got rejected at $10,000, which caused the price to drop.

The price dropped below $9,850 and more importantly, the recent support at $9,700. Long traders had positioned their stop-loss below the previous support and as the stops were hit the downwards move started to accelerate through a chain reaction in which only the first major support level can only stop the price from falling as this is the level traders are watching to step back in.

In the case of this downward fall, the area around $9,050-9,150 was the primary zone to hold.

Total market cap remains above the 100 and 200-day moving average

Total market capitalization cryptocurrency 1-day chart

Total market capitalization cryptocurrency 1-day chart. Source: TradingView

The crypto total market capitalization is still acting inside an uptrend and more importantly, moving above the 100 and 200-day moving average. 

Preferably, the green zone has to remain a support, however, a wick towards $240 billion is possible. As long as the $240-$245 billion zone remains support, further upside can be expected and the next resistance zone is targeted at $310-$325 billion.

If the $240 billion support is lost a crucial test of the $220-$225 billion area could occur. In that scenario, the lender of last resort would be to see the 100-day and 200-day MA serve as support. 

Bullish scenario

BTC USD 4-hour bullish scenario

BTC USD 4-hour bullish scenario. Source: TradingView

The 4-hour chart shows a clear structure for bullish momentum. The support at $9,050-$9,200 has to hold and even though a potential wick to $8,850-$8,900 could occur, a daily close above $9,050-$9,200 is preferred.

In that regard, a renewed test of the lows can occur to create bullish divergences or a double bottom. After that, reclaiming $9,300 is pivotal for further momentum.

Finally, a break of the $9,500-$9,550 area is the last crucial part. If the price of Bitcoin can break above that resistance it’s likely to start a renewed test of the $10,000-$10,500 zones.

This resistance has been tested many times and it’s even more likely to see continuation towards $12,000 once the resistance is broken.

Bearish scenario

BTC USD 4-hour bearish scenario

BTC USD 4-hour bearish scenario. Source: TradingView

The bearish scenario is clean and straightforward. The primary pivot for this scenario is the $9,050-$9,300 area and losing that zone could indicate further downwards momentum.

However, what should traders look for in the bearish scenario? First of all, a rejection at the $9,600-$9,700 area could indicate a downwards test of the support zones at $9,050-$9,200.

The more often the support at $9,050-$9,200 is tested, the weaker it becomes as buyers become exhausted. 

Through that, if the price of Bitcoin rejects at $9,600-$9,700 and loses $9,050-$9,200 as support, every bearish retest and rejection could be a signal for a potential short opportunity and further downwards momentum. 

In that regard, losing $9,050-$9,200 could mark a more significant correction for the crypto markets in which the $7,500-$7,800 areas are the first massive support zones to be tested. 

This does not mean that investors should expect continuation of the crypto bear market and we should remember that the price of Bitcoin has rallied massively since the March 12 crash. 

A correction of 25-30 percent is healthy and not unnatural in a market that trends upward. 

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.

Source: https://cointelegraph.com/news/bitcoin-price-drop-to-key-9k-support-could-place-the-uptrend-in-peril

Blockchain

Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head

Thomas Farley, former chief operating officer of the New York Stock Exchange, is “sanguine” about recent price action.

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Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.

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Source: https://cointelegraph.com/news/bitcoin-in-uptrend-but-btc-may-never-beat-gold-s-10t-market-cap-ex-nyse-head

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Blockchain

Ally Has Price Boost of 48% – Where to Buy Ally

Ally price (ALY) has seen its trading volume spike by over 436% in the…

The post Ally Has Price Boost of 48% – Where to Buy Ally appeared first on Coin Journal.

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Ally price (ALY) has seen its trading volume spike by over 436% in the last 24 hours.

Ally, a cryptocurrency-powered secure messaging platform, has seen its price spike by almost 50% in the last 24 hours.

As concerns over privacy and fear of surveillance rises, platforms such as Ally seek to fulfil the demand for trusted means of communication.

Whatsapp, the most popularly used encrypted messaging service, has recently changed its terms of service now it is owned by Facebook, leading some to fear that the social media giant is looking for new ways to monetise Whatsapps’ user data.

Where to buy Ally

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What makes Ally a potential buy?

In the last year to date, buyers of Ally would be in profit by an enormous 4,021%. To put this in perspective, a $100 investment a year ago would have now grown to be worth thousands of dollars.

Ally claims that it has strong fundamental value, as it is “focused on providing users the most secure and decentralized online communication solution. With private P2P chats, group chats, broadcast channels, ephemeral messaging, and crypto transfers, Ally offers a multitude of features to ensure users have the richest experience possible.

As the first dApp built on Skrumble Network’s public blockchain, Ally is primed to be the go-to communication application for managing crypto communities, discussing sensitive political matters, and exploring a variety of fun and engaging topics.

If backlash against some of the more established messaging services takes off, then Ally could certainly be a project to watch over the coming years if users look to flock to a new platform.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://coinjournal.net/news/ally-has-price-boost-of-48-where-to-buy-ally/

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Blockchain

Digital Assets AG Launching Stock Tokens on Solana

Digital Assets AG is launching tokenized stocks on the Solana Blockchain, which will be exclusively available though crypto exchange FTX.

The post Digital Assets AG Launching Stock Tokens on Solana appeared first on BeInCrypto.

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Digital Assets AG is launching tokenized stocks on the Solana Blockchain, which will be exclusively available though crypto exchange FTX.

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Digital Assets AG (DAAG) is based in Switzerland and specializes in designing and issuing tokenized financial instruments. It is now bringing its tokenized stock infrastructure to the Solana blockchain. During this initial debut, DAAG will also launch the free-floating security tokens exclusively on crypto exchange FTX. This will allow for the risk-free, compliant transfer of tokenized stocks.

According to Brandon Williams, Corporate Development Lead at DAAG, “operating on Solana will offer a much more efficient, and cost-effective environment for the trading and utilization of tokenized stocks.”

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Secondary-market stock token trading

In April, Binance became the first major exchange to offer stock tokens, in partnership with DAAG. Binance inaugurated its stock token offerings with Tesla, but later added MicroStrategy, Microsoft and Apple to its portfolio. However, these stock tokens are limited to being traded on Binance exclusively, with users only able to open or close positions. This restricts their ability to make withdrawals, or transfer cross-chain or to an external party. 

But now, DAAG has also launched free-floating tokenized stocks on Solana. This means that users can now trade these tokens between different centralized and decentralized exchanges built on the Solana blockchain. Sam Bankman-Fried, founder and CEO of FTX said that this could set a new standard and “help facilitate a paradigm shift in the underlying market structure.” 

Regulatory approval

Initially, these stock tokens will be exclusively available on crypto exchange FTX to KYC’d buyers and sellers in permitted jurisdictions. Users will be able to buy, sell and withdraw the 55 free-floating stocks in a 24/7/365 trading cycle. These will include stock tokens for Facebook, Google, Netflix, Nvidia, PayPal, Square and Tesla. Users will also be able to make transfers to secondary markets without restriction, with near-instantaneous settlement and no counterparty risk.

These free-floating tokens are regulatory-approved security tokens that can be used for tokenized stock trading. Each stock token is worth one share of stock, backed by a corresponding share in a portfolio of underlying securities. Previously, there had been some issue with Binance’s stock tokens, about whether they required a securities’ prospectus. However, in this instance the Financial Market Authority (FMA) of Liechtenstein endorsed a securities’ prospectus, making DAAG Tokenized Stocks valid in the European Economic Area (EEA).

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Source: https://beincrypto.com/digital-assets-ag-launching-stock-tokens-on-solana/

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CryptoPunt Announces World’s First Effort at Truly Decentralized Gambling

The concept of gambling has undergone multiple iterations over the years. What started out as an illegal practice is now considered legal physical and online entertainment in numerous regions. The role of cryptocurrencies in this segment cannot be underestimated, as decentralized gambling is the next step in the evolution to a truly fair ecosystem.

The post CryptoPunt Announces World’s First Effort at Truly Decentralized Gambling appeared first on BeInCrypto.

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The concept of gambling has undergone multiple iterations over the years. What started out as an illegal practice is now considered legal physical and online entertainment in numerous regions.

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The role of cryptocurrencies in this segment cannot be underestimated, as decentralized gambling is the next step in the evolution to a truly fair ecosystem.

Crypto gambling is on the rise

Over the past few years, there have been numerous initiatives to combine the best of online gambling and cryptocurrencies. Digital assets provide pseudonymity, improve accessibility, and are widely accepted among casino and gambling providers. It is a payment method that protects both users and providers alike, operating outside the control of banks and governments. 

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Whereas the initial push was focused on centralized platforms accepting cryptocurrency payments, that is no longer the case today. Decentralization is the new norm, although it is not always straightforward to achieve. Decentralized gambling applications have gained some momentum over the years, although they mainly cater to existing cryptocurrency enthusiasts. That approach is successful, but it will do very little to convince the mainstream of this option.

That is a bit strange, as crypto gambling also introduces the concept of provable fairness. Allowing all users to verify the outcome of a wager independently creates an unprecedented sense of empowerment. Removing the need to rely on the service provider to confirm whether an outcome is both fair and crucial. The gambling industry has always had a transparency issue, but that can be resolved by innovative projects such as CryptoPunt.

The potential of CryptoPunt

As a platform focusing on gambling and gaming, CryptoPunt goes well beyond traditional crypto casinos. It will support initial games such as Blackjack, Jackpot, and CoinFlip, whilst continuously adding many more entertaining options whose outcomes are always recorded on-chain, staying true to the crypto ethos of decentralization. All bets are recorded on the Polygon Matic ecosystem, a layer-two solution for the Ethereum blockchain. 

Onboarding new users is essential in the decentralized gambling industry. Making this process as straightforward as possible is crucial, and CryptoPunt checks the right boxes. It requires no traditional registration but rather a connection through a Web3 wallet like MetaMask or Coinbase Wallet, forgoing manual deposits/withdrawals, KYC procedures, and other cumbersome aspects. On that count, this solution is far more approachable than most other gambling options on the market today.

Another crucial benefit of dealing with cryptocurrencies is how it leads to faster deposits and withdrawals. For CryptoPunt users, those transactions are instant. The platform is not responsible for the payments, as it maintains a non-custodial solution. User winnings appear directly in one’s wallet, speeding up the transactions and enhancing the control users can experience.

All of this sounds good on paper, but it wouldn’t be worth much without a convenient user experience. CryptoPunt offers a sleek gaming interface to minimize navigational delays and increase the overall gaming enjoyment. The interface looks very intuitive in its current beta version, yet more touch-ups will be introduced prior to the full release.

The PUN token’s purpose

As is courtesy in the cryptocurrency industry, new platforms will usually have a native token. For CryptoPunt, that token is $PUN, rewarding affiliate marketers with a revenue share from referrals. It also grants access to exclusive promotions and better platform rates. In the future, PUN will be useful for accessing prizes and plenty of other incentives. 

On the referral front, markets earn 0.1% of every bet made by referrals. That offer applies to games against house only. Additionally, there is a reduced house edge for PUN holders, allowing for bigger profits to be pocketed when winning. Community members will be able to increase their holdings through various community-oriented campaigns running on Telegram, social media, and so forth. There is also an in-game chat where holders must hold $PUN to deter scammers approaching them in-chat.

Given the backing by renowned VCs, including VYSYN Ventures, DutchCryptoInvestors, CryptoMarvels, ChinaPolk, BMW Capital, and others, there is a lot of attention on CryptoPunt and its PUN token, with the launch leading up to be a success. Unlike other tokens, $PUN supports both the ERC-20 and BEP-20 token standards, an industry first. With trading to go live on PancakeSwap and Uniswap, there will be broad access to the token and overall liquidity, whilst also allowing inter-chain bridging.

Closing thoughts

It is evident there are numerous ways to decentralize the gambling industry further. Rather than just focusing on the decentralized aspect of the games, CryptoPunt goes one step further by creating a sleek and massively entertaining experience, fit for the current state of the online gambling market. Its non-custodial solution for deposits and withdrawals creates a direct line of communication between players and CryptoPunt, whereas its modular features and focus on user-friendliness can make a big difference when catering to millions of players globally.

Provably fair gambling and gaming will become more commonplace over the coming years. Users need the ability to verify the outcome of wagers without relying on the service provider to share details that may or may not be accurate. The dual-pronged approach through gambling and gaming is a breath of fresh air in the decentralized gambling world, as the model caters to the needs of millions of people rather than just cryptocurrency enthusiasts.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Source: https://beincrypto.com/cryptopunt-to-offer-truly-decentralized-gambling/

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