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Bored With Bitcoin? This BTC Price Level Is Key for a Big Breakout

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The price of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, has been ranging between $8,600 and $10,500 since the halving. During the two-months’ sideways action, the market started to heat up and altcoins entered the spotlight.

Additionally, traders and investors are constantly debating whether BTC price is still in bull or bear territory. Let’s take a closer look at the charts to where Bitcoin may be headed next.

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

Bitcoin has to hold support above the crucial level of $8,600

The price of Bitcoin has a critical level to sustain above at the $8,550-8,750 area.

BTC/USD 1-day chart. Source: TradingView

BTC/USD 1-day chart. Source: TradingView

Bitcoin has been in a significant uptrend since the heavy crash in March. As an uptrend is classified through higher highs and higher lows, the recent low is found at the $8,550-8,750 area.

This is a significant area because traders use these pivots for the placement of stop/loss levels. But since the price of Bitcoin has been slowly retracing and consolidating, the focus should be on the volume.

During the consolidation period, the volume steadily decreased. This is an indication that we’re not in the “move,” which would mean a new trend. This move would be confirmed by a heavy breakout above $10,500 or a heavy breakdown below $8,500.

An example is seen in the consolidation period around $3,500-4,000 eighteen months ago.

A big move is on the horizon

In the first quarter of 2019, the price of Bitcoin moved inside a narrow range.

BTC/USD 1-day chart. Source: TradingView

BTC/USD 1-day chart. Source: TradingView

This is significant because it shows what usually happens during a lengthy sideways period and why the current stage is also classified as one.

During the range-bound period of 2019, the volume drained away over time. The actual climax of the volume came with the breakout, which meant that breakout traders hit their limit buys and shorters hit their stop/loss.

This chain reaction triggered a sudden $1,000 candle. As the price has been hovering in the range for months, the breakout is usually a significant and explosive one. The longer something ranges in a certain accumulation period, the bigger the move once it breaks out.

This exact example can be seen with many altcoins as some of them have been hovering in an accumulation range. One such example is Zilliqa (ZIL), which broke out of the range and surged for 1,000% since.

Crucial levels on smaller timeframes for Bitcoin

The crucial levels on smaller timeframes are essentially the support between $8,800-9,000 and the resistance at $9,300. The latter is more important as a breakthrough of the $9,300 level would signal further upward continuation. 

BTC/USD 4-hour chart. Source: TradingView

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart is showing a clear range-bound structure. Support is found between $8,900-9,000, which must hold for the bulls. As long as that support remains support, a retest of the resistance zone is on the table.

Generally, the more often a level gets tested, the weaker it becomes. Therefore, a renewed test of resistance at the $9,300 level could lead to a significant breakout as it would place Bitcoin back inside the previous range.

In other words, the chances of further downside get slimmer if $9,300 is reclaimed.

Total market cap holding support above 100-day and 200-day MA

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

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

The total market capitalization of the cryptocurrency market is holding the previous low as support as well.

More significantly, the total cryptocurrency market cap is holding above the 100-day and 200-day Moving Averages (MA). As long as these hold, the market capitalization is in bull territory.

This is because this is a significant bull/bear momentum indicator. The 100-day and 200-Day MAs have been serving as support throughout the entire previous cryptocurrency market cycle.

With these levels likely holding as support, a breakout above $260 billion becomes increasingly likely. Reclaiming the $260 billion level would also add fuel for further momentum toward new highs.

The bullish scenario for Bitcoin

BTC/USD 4-hour bullish scenario chart. Source: TradingView

BTC/USD 4-hour bullish scenario chart. Source: TradingView

The bullish scenario has a few crucial points. First of all, the support at $8,900-9,000 has to hold. If this support is lost, BTC/USD will likely drop below $8,550-8,750 into bearish territory.

Second, the key resistance at $9,300 has to break for a potential rally toward $9,650. Since this level is untested, it would be the first pivot point for more upside. This previous resistance of $9,300 has to flip for support for a move higher.

However, as long as the price of Bitcoin remains below $10,500, it’s expected that the volume of the move will be small. A big breakout would occur if the resistance zone of $10,000-10,500 is finally conquered as many triggers would be hit.

It wouldn’t be a surprise to see a quick rise within a few hours to the next major resistance zone at $11,600.

The bearish scenario for Bitcoin

BTC/USD 4-hour bearish scenario chart. Source: TradingView

BTC/USD 4-hour bearish scenario chart. Source: TradingView

The bearish scenario is also heavily dependent on the $9,300 level. If that level rejects again, a retest of support at $8,800-8,900 should be expected and the weaker this support will become, increasing the chances for more downside.

With $9,300 holding as resistance, a retest of $8,800-8,900 would likely result in another drop. Going below the $8,600 level could also see a high-volume drop because this means that the range of the past two months would be lost.

If the price of Bitcoin drops below $8,600, I’m expecting a fast drop towards $7,400-7,700 without many opportunities for shorts. Holding the current support and the 1-day support levels would mean that the market is still in great shape.

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/bored-with-bitcoin-this-btc-price-level-is-key-for-a-big-breakout

Blockchain

Swipe Is the Latest Project to Integrate Chainlink’s Price Oracles

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Swipe wallet and crypto debit card platform has integrated Chainlink (LINK) data oracles to improve the accuracy of reward issuance and token burns. 

Swipe CEO Joselito Lizarondo said Chainlink’s decentralized price feeds will provide more accurate and fair token conversion prices for users and was an important step towards  greater decentralization:

“This is important to us to bring transparency to our users, especially as we’re kind of leaning towards starting to migrate from custodial products to noncustodial products in the future. So this is a starting point of decentralization in our system to ensure that our users are seeing a fair price point.”

Cointelegraph asked Lizarondo whether the rising price of LINK concerned him as consumers of Chainlink data have to pay with LINK tokens for their data calls. Lizarondo acknowledged that “there is a fee structure,” but declined to disclose the details.

Half a million users

The Swipe CEO declined to disclose statistics about debit card transaction volumes besides saying that they have 500,000 users. He noted that since his competitors do not disclose their numbers, he does not want to give them an advantage.

Major cryptocurrency exchange Binance is the majority owner of Swipe, but Lizarondo said the company has preserved its operational independence. Swipe also has an interesting philosophy towards digital assets custody, they employ two major custodials — Coinbase Custody and BitGo.

Lizarondo explained that it is dictated by both necessity, as Coinbase does not yet support Swipe’s native token SXP, and a desire to diversify their risks:

“We don’t want to put all of our eggs in one basket. We don’t want to have a central point of failure, even though these are very reliable custodians.”

Source: https://cointelegraph.com/news/swipe-is-the-latest-project-to-integrate-chainlinks-price-oracles

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Craig Wright Won’t Need to Pay Hodlnaut $60K Until Appeal Is Over, Says Counsel

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Craig Wright, a self-proclaimed Bitcoin (BTC) creator, is apparently not required to pay legal fees for a failed libel suit against the Twitter crypto enthusiast known as Hodlonaut.

In an Aug. 14 email to Cointelegraph, Wright’s legal representative argued that he is not obliged to pay legal costs in the defamation suit until the Norwegian Supreme Court considers an appeal.

The spokesperson said, “Craig has appealed to the Norwegian Supreme Court. Craig’s Norwegian lawyers say that there is no obligation on Craig to pay the costs until that appeal is dealt with.”

The new comments come in response to Hodlonaut claiming that Wright has been ignoring a court filing requiring him to pay legal fees within two weeks following a Jun. 8 court judgment. In an Aug. 13 tweet, Hodlonaut argued that Wright “has not paid a cent” out of $60,000 in two months after the judgement was made.

According to Hodlonaut, the Norwegian Court of Appeals denied an appeal to Wright earlier in June. The Twitter persona continued that Wright was obliged to pay “all costs for both District Court and Court of Appeals” in a tweet on June 8.

As previously reported, Hodlonaut is one of several crypto people targeted by Wright’s multiple defamation suits aiming to prove that he is the true creator of Bitcoin. Similar cases were brought against Ethereum co-founder Vitalik Buterin, early Bitcoin investor Roger Ver, and podcaster Peter McCormack.

The legal action against Hodlonaut was reportedly triggered by offensive tweets calling Wright a “very sad and pathetic scammer” and claiming that the Australian businessman was “clearly mentally ill.” Hodlonaut is also reportedly involved in the creation of the #CraigWrightIsAFraud hashtag.

In response to initial reports on Wright filing a libel suit against Hodlonaut, the crypto community announced a crowdfunding to help the Twitter crypto enthusiast “unfounded legal attacks.” 

Blockchain​ entrepreneur Elizabeth Stark was apparently among the first crypto players to support Hodlonaut, announcing WeAreallHodlonaut.com crowdfunding website in April 2019. At the time of writing, the initiative has raised $32,430 worth of Bitcoin (BTC), blowing well past it’s initial goal of $20,000.

How or whether these funds have been applied to Hodlnaut’s legal costs remains uncertain, but the site claims “We hit our $20k goal but lawyers can get expensive so please keep it up with the donations.” It also features a link for a swag store, the proceeds of which purportedly go to the legal defence fund.

Source: https://cointelegraph.com/news/craig-wright-wont-need-to-pay-hodlnaut-60k-until-appeal-is-over-says-counsel

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Bitcoin a Hedge Against Elon Musk Mining Asteroid Gold, Say Winklevoss Twins

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The Winklevoss Twins suggested that Bitcoin (BTC) is a better investment than gold because the metal’s supply will increase after Elon Musk starts mining asteroids.

In an interview with internet personality and Barstool Sports founder David Portnoy, the Winklevoss Twins claimed that Bitcoin is a better investment than gold because gold does not have a fixed supply:

“There’s billions of dollars of gold floating in asteroids around this planet, and Elon [Musk] is gonna get up there and start mining gold. […] That’s why gold is a problem, because the supply isn’t fixed like Bitcoin.”

Portnoy reasonably asked, “Is that, like, a real statement?” to which the founders of Gemini cryptocurrency exchange replied, “yeah.”

To further reiterate the idea that gold is inferior to Bitcoin, one of the twins said that “gold is for boomers” adding that Bitcoin is “the only fixed asset in the galaxy.”

Space mining is not a new idea, in fact Planetary Resources — a firm planning to mine asteroids for profit founded in 2016 — has so far raked in $50.3 million according to company data website Crunchbase. As Cointelegraph reported at the end of 2018, the firm was later acquired by Ethereum-focused blockchain firm Consensys.

Some predict that with further development of space travel technology we could soon see a new space race between private companies that are looking to mine minerals in space. CNBC suggested in May 2018 that materials lying in the belt of asteroids between Mars and Jupiter hold “wealth equivalent to about $100 billion for every individual on Earth.”

Source: https://cointelegraph.com/news/bitcoin-a-hedge-against-elon-musk-mining-asteroid-gold-say-winklevoss-twins

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