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Miners Have Been Selling More Bitcoin Than They Generate, Recent Data Suggests

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Last week, Bitcoin (BTC) miners sold 11 per cent more coins than they generated over the same period, June 1 data from on-chain analysis portal ByteTree suggests.

According to the portal’s metric that tracks Bitcoin wallet addresses associated with miners, around 5,800 BTC was generated over the past seven days, compared to over 6,500 ‘first spend’ transactions.

The ‘first spend’ that is used for the calculation is “the first time that a Bitcoin leaves the wallet it was generated in,” a ByteTree spokesperson explained to Cointelegraph, elaborating on how their metric works in greater detail:

“The miner wallet can be owned by an individual, a company or a mining pool. When the coins get generated by the miners and appear in the miner wallet, they are counted as ‘generation’. Those coins can then sit in their respective miner wallets for days, months, years or forever. It is up to the controller of that miner wallet to decide when they want to move the coins. If these coins are generated by a mining pool, the coins will either be distributed to the pool subscribers (ie. paid in btc) or sent to an exchange at some point in order to cover the fiat costs of operation.”

It might be premature to call ‘capitulation’ even among currently inefficient miners

Crypto Twitter commentator Conner Brown has used this data to argue that inefficient miners are capitulating, but some experts warn that the term ‘capitulation’ might entail different meanings. 

Thomas Heller, global business director at F2Pool, told Cointelegraph that even when it becomes unprofitable to mine with certain equipment due to the increased difficulty, the owners normally sell their machines to places where electricity is cheaper instead of quitting the game. 

“As these older machines are no longer profitable to mine at the electricity price in China, Canada, USA, or Europe, they eventually end up in other locations, such as Kazakhstan, Russia, the Middle East and South America,” Heller said, concluding:

“So far in 2020, there have been very few cases of mining farms going out of business”.

Post-halving realities

As previously reported by Cointelegraph, the Bitcoin halving has affected the network in numerous ways, as the hash rate, block time, fees, and miner revenue have changed considerably as a result of the event. 

In order to mitigate the increased difficulty and provide pre-halving levels of mining efficiency, a new generation of mining hardware is being released by industry leaders like Bitmain and MicroBT. Earlier today, Bitmain unveiled its new Antminer T19 Bitcoin Mining ASIC, which will reportedly start getting shipped out in late June.

Source: https://cointelegraph.com/news/miners-have-been-selling-more-bitcoin-than-they-generate-recent-data-suggests

Blockchain

Financial Independence Day: 268% Average ROI Buying Bitcoin On July 4

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All across the United States, American Bitcoin investors are stepping away from their trading desks to celebrate.

In addition to celebrating the country’s independence, they can also celebrate the on average 268% ROI Bitcoin brings from holiday to holiday. Will the next 365 days in crypto market price action lead to even more financial independence for holders?

Will There Be Crypto Market Fireworks On The 4th of July?

Markets are cyclical and history, trends, and more often come back around. Certain seasonably is said to also exist in financial markets.

It’s where the phrase “sell in May and go away,” or “the Halloween effect” came from.

Related Reading | Research Shows That Holidays Cause FOMO Fireworks in Crypto Price Charts

Holidays themselves have shown to have a dramatic impact on Bitcoin price. Whether it’s the low liquidity on holidays due to traders being busy or chatter at the dinner table, the asset can react powerfully.

It was after Thanksgiving in 2017 that Bitcoin exploded from $10,000 to $20,000.

This weekend across the United States, American citizens will be celebrating the country’s birthday and independence as a new country. The 4th of July holiday is among the most celebrated in the States.

With Bitcoin price once again flirting with $10,000, with $20,000 a possible target, will we see fireworks this Independence Day?

bitcoin independence day

Bitcoin BTCUSD Independence Day ROI Chart | Source: TradingView

Buying Bitcoin On Independence Day Results In Financial Freedom

According to a review of price action ranging from each Independence Day to the next, buying Bitcoin can bring financial independence.

Dating back a decade, on average, data shows that buying BTC on July 4 and holding it for a year results in an average return of 268%.

Data indicates that only three out of all years analyzed did Bitcoin decline year over year on July 4. All other times the first-ever cryptocurrency had a large return for saavy investors.

Related Reading | Data Shows Crypto More Likely To Pump Following Consolidation, 20% Move Anticipated

The day itself hasn’t resulted in anything notable in terms of volatility or trend changes. However, research shows that buying on July 4 is likely to reward investors.

Those considering celebrating Independence Day by buying BTC today may be celebrating financial freedom next year.

Source: https://www.newsbtc.com/2020/07/04/independence-day-bitcoin-july-4/?utm_source=rss&utm_medium=rss&utm_campaign=independence-day-bitcoin-july-4

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‘Everything Will Move to Confidential DeFi‘ Beam’s CEO Says

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On June 29th, major privacy cryptocurrency Beam underwent a hard fork to enable “Confidential DeFi” on Beam. In the time of the DeFi boom, how will Beam’s confidential DeFi be different from other DeFi such as COMP and MakerDao? Alexander Zaidelson, the CEO of Beam, spoke to Cointelegraph about its prospects.

The Beam hard fork activated the support of confidential assets, or Beam CA, which enabled independent tokens to be issued on the Beam blockchain. It is a key component of the confidential DeFi, benefitting from the confidentiality and scalability features of Beam.

Zaidelson explained that confidential DeFi is  “an ecosystem for financial services that have full confidentiality, great usability and also opt-in auditability.”

Zaidelson acknowledged the merit of other DeFi services like Compound and Maker as “solid financial instruments”. Indeed he dismissed a comparison between the recent DeFi boom and the ICO boom in 2017, and described ICOs as “a flawed concept where people believed in invaded promises and lost their money.”

But he also pointed out the difference from Beam’s DeFi as follows:

“They are built on Ethereum, which is an antithesis of privacy. Beam Confidential DeFi will offer evolved functionality plus financial privacy and all that with great usability and ability to audit transactions”

When asked if Beam’s DeFi targets audiences different from those of COMP and Maker, he answered that “everyone needs privacy, so eventually, everything will move to confidential DeFi.”

Compound’s governance token COMP has been wildly successful in the initial period since launching. It only took a single day of trading for COMP to dethrone Maker (MKR) from the leader of the decentralized finance rankings.

Source: https://cointelegraph.com/news/everything-will-move-to-confidential-defi-beams-ceo-says

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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

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