The S&P 500 plunged 5.89% on June 11, its fourth-worst fall this year. This brought back memories of the sharp sell-off seen in March when investors dumped most asset classes as the coronavirus pandemic took hold.
The Organization for Economic Co-operation and Development said in a report that governments should prepare for a possible second wave of coronavirus cases. The OECD heavily emphasized the continuance of ultra-accommodative monetary policies and higher public debt until inflation and economic activity picks up and unemployment levels fall.
Daily cryptocurrency market performance. Source: Coin360
During the current crisis, the U.S. debt has crossed the $26 trillion mark. As the central banks balance sheets continue to balloon, several institutional investors may consider investing in higher risk assets like Bitcoin to hedge their portfolio against future currency crises.
If the second wave of coronavirus is as bad as medical experts predict, the short-term panic selling in cryptocurrencies cannot be ruled out but lower levels are likely to witness strong buying by long-term investors.
Bitcoin (BTC) broke above the resistance line of the symmetrical triangle and reached the five-figure mark on June 10. However, $10,000 again proved a stiff hurdle to cross as the price turned down sharply on June 11.
BTC/USD daily chart. Source: Tradingview
This suggests that the bears are aggressively defending the overhead resistance zone between $10,000 and $10,500.
The bulls held the 50-day simple moving average ($9,177) on June 11 and managed to keep the BTC/USD pair inside the triangle. However, buyers are struggling to push the price above the 20-day exponential moving average ($9,529).
If the pair turns down from the 20-day EMA and breaks below $9,078.96, a decline to $8,130.58 is possible. If this level cracks then the pair could start a new downtrend.
On the other hand, if the bulls can scale the price above the 20-day EMA, another attempt to climb the $10,000–$10,500 zone is likely. If successful, the pair is likely to pick up momentum and start the next leg of the sustained uptrend.
Ether (ETH) broke above the $247.827 resistance on June 10 and 11 but failed to sustain it. This attracted profit booking that dragged the price back below the support line of the ascending channel on June 11.
ETH/USD daily chart. Source: Tradingview
The bulls again purchased the drop to the uptrend line, which makes this an important support to watch closely.
Currently, the bulls are attempting to push the second-ranked cryptocurrency on CoinMarketCap back into the ascending channel. If successful, a rally to $253.556 is possible.
Conversely, if the ETH/USD pair plunges below the uptrend line it will signal a possible change in trend.
The sharp drop in XRP was arrested at the support line of the symmetrical triangle on June 10. This is a positive sign as it shows that the bulls are defending this support aggressively. They will now attempt to push the price back to the downtrend line of the triangle.
XRP/USD daily chart. Source: Tradingview
A breakout of the downtrend line will be a positive sign and it could offer a buying opportunity to the traders.
Above the triangle, the third-ranked cryptocurrency on CoinMarketCap can rally to $0.235688 and then to the pattern target at $0.2707.
However, if the XRP/USD pair fails to sustain the rebound, the bears will try to sink the price below the triangle. If successful, a drop to $0.16 and then to $0.14 is likely.
Bitcoin Cash (BCH) broke above $255.46 on June 10 but could not scale above the $260 level. This resulted in profit booking by short-term traders and the price plunged back below the moving averages.
BCH/USD daily chart. Source: Tradingview
The bulls are currently attempting to push the fifth-ranked cryptocurrency on CoinMarketCap back above the moving averages. If successful, a rally to $255.46 is possible. The BCH/USD pair is likely to show strength above $260 and pick up momentum above $280.47.
Conversely, if the pair turns down from the moving averages, the bears will try to sink it to the next support at $217.55. If this support holds, the pair might remain stuck between $217.55–$255.46. If the $217.55 level cracks the pair can drop to $200.
Bitcoin SV (BSV) again failed to break above $200 on June 10. This attracted selling that resulted in a sharp fall on June 11. The bulls are currently attempting to defend the strong support at $170.
BSV/USD daily chart. Source: Tradingview
If successful, the sixth-ranked cryptocurrency on CoinMarketCap is likely to extend its stay inside the $170–$227 range. In a large range, the rebound off the support can offer a buying opportunity to the traders but if the BSV/USD pair breaks below the $170 support, a drop to $146.20 is possible.
Litecoin (LTC) broke below the moving averages and dropped towards the first support at $41.72 on June 11. The bulls purchased this dip and are currently attempting to push the price back above the moving averages.
LTC/USD daily chart. Source: Tradingview
If successful, the seventh-ranked cryptocurrency on CoinMarketCap will try to move up to $51. A breakout of this level will signal the start of a possible uptrend. Above this level, a rally to $64 is likely.
Conversely, if the LTC/USD pair turns down from $51, a few more days of consolidation can be expected. Both moving averages are flat and the relative strength index is just below the 50 level which points to a range-bound action for a few days.
The trend will turn in favor of the bears if the pair turns down from the current levels and plunges below the critical support at $39.
The moving average support finally gave way on June 11 and Binance Coin (BNB) dropped to $15.93. The bulls purchased the dip and are currently attempting to push the price back above the moving averages.
BNB/USD daily chart. Source: Tradingview
If successful, the eighth-ranked crypto-asset on CoinMarketCap will again try to rise above the overhead resistance of $18.1377. In doing so, the momentum is likely to pick up and a rally to $21.50 and $24 is possible.
Conversely, if the BNB/USD pair turns down from the moving averages and slips below $15.72 a drop to $13.65 is likely.
After failing to cross above the overhead resistance of $2.8319, EOS succumbed to selling pressure on June 11. This shows that the aggressive bulls who were expecting a breakout of $2.8319 dumped their positions.
EOS/USD daily chart. Source: Tradingview
The $2.3314 level has acted as a strong support from early April and the bulls purchased the dip to $2.4250 on June 11.
This increases the possibility of a range-bound action between $2.3314–$2.8319 for the next few days.
The ninth-ranked cryptocurrency on CoinMarketCap is likely to show strength on a breakout and close (UTC time) above $2.8319. Conversely, a break below $2.3314 will tilt the advantage in favor of the bears.
Cardano (ADA) is currently attempting to resume the uptrend after bouncing off the 20-day EMA ($0.075) as suggested in the previous analysis. The 38.2% Fibonacci retracement level of the most recent leg of the up move is also close to the 20-day EMA and working as a strong support.
ADA/USD daily chart. Source: Tradingview
The first target objective on the upside is a retest of $0.0901373. If the 10th-ranked cryptocurrency on CoinMarketCap turns down from this level a few days of range-bound action is likely.
If the bulls can propel the price above $0.0901373 the ADA/USD pair might rally to the $0.1–$0.10652 resistance zone.
The pair will signal weakness if it turns down from the current levels and breaks below the 20-day EMA.
Tezos (XTZ) plunged below both moving averages on June 11 but the bulls aggressively purchased the dip to the support line of the descending channel. This is a positive sign as it shows that the bulls are still buying the dips.
XTZ/USD daily chart. Source: Tradingview
However, the recovery is facing resistance at the moving averages. If the 11th-ranked cryptocurrency on CoinMarketCap turns down from the current levels, the bears will make another attempt to break below the channel.
If successful, a drop to the critical support at $2.24 is possible. A break below this level could start a new downtrend.
The first sign of strength would be a breakout of the resistance line of the channel. Above this level, a rally to $3.1384 and then to $3.60 is likely.
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.
Market data is provided by HitBTC exchange.
$1 Bitcoin investment beats gold and stocks despite 2020 gains
In a knock to gold bugs, data shows that despite gold’s run this year, Bitcoin still trumps every macro asset when it comes to investment profits.
Bitcoin “quietly eating the financial world”
Fresh off its second best quarterly close on record, Bitcoin is up almost 50% in 2020, while gold has managed just half of that — 25.6%.
The S&P 500, an index with which Bitcoin has shown considerable correlation, is just 5.5% higher than at the start of January. Despite its increasing strength, the U.S. dollar has netted savers just 2.2% year-to-date returns, while oil is the big loser, with WTI crude down by almost 35%.
Bitcoin versus gold historical chart. Source: Skew
For popular statistician Willy Woo, zooming out to examine Bitcoin’s returns versus gold since the cryptocurrency’s inception in 2009 compounds the case for holding BTC.
Gold’s having its best year since 2010. This how it’s doing against BTC.
$1 invested on 6 Oct 2009 (when BTC was first priced) would be worth $13.9m today.
Bitcoin’s software is quietly eating the financial world. pic.twitter.com/eE6xQ5NYFG
— Willy Woo (@woonomic) October 6, 2020
The numbers would appear to speak for themselves. $1 of Bitcoin purchased even one year ago would have netted its owner $0.31 profit, while gold would have got $0.27.
Prior to the end of 2017, when BTC/USD began consolidating after reaching $20,000 all-time highs, the differences are much more palpable. $1 invested five years ago is now worth $44.43, while $1 of gold is worth $1.67, according to Woo’s figures.
United States’ national debt hits $27 trillion
As Cointelegraph reported, Woo has stated that he believes Bitcoin will soon decouple from gold and other traditional markets to carve out a price trajectory of its own.
The cryptocurrency has weathered criticism from gold bugs as much as ever during 2020’s market volatility, with serial gold bug Peter Schiff among its most vocal naysayers. Schiff has toned down his skepticism in recent weeks, focusing on the U.S. dollar and the state of the country’s economic debt.
U.S. total debt has now passed $27 trillion for the first time in history, according to the U.S. National Debt Clock.
“The National Debt just past $27 trillion, up about $7 trillion since Trump took office. If [Donald Trump] serves just one term he will likely add more to the national debt in 4 years than Obama did in 8,” Schiff wrote on Oct. 6.
“What’s worse is that [Joe Biden’s] 1st term may add more than both combined.”
DBS and Standard Chartered to launch blockchain platform to curb trade finance fraud
The Singapore-based multinational banking entity DBS and Standard Chartered have completed the proof-of-oncept of their blockchain trade finance platform called the Trade Finance Registry.
The two entities developed the PoC in collaboration with 12 other banks on top of the blockchain platform of Singapore-headquartered company dltledgers.
dltledgers told Cointelegraph that the banks involved in the project now intend to launch the platform for commercial use by central banks around the globe.
While the platform will first be used by the Monetary Authority of Singapore, the entities involved in the project also plan to propose it to central banks from the United States, United Kingdon, Thailand, United Arab Emirates, India, Hongkong, Qatar and Indonesia.
Backed by Enterprise Singapore — a government enterprise under the Ministry of Trade and Industry — and the Association of Banks in Singapore, the trade finance platform is expected to help banks fight fraud in lending and commodity trade.
According to dltledgers founder Samir Neji, the platform uses the company’s blockchain-based TradeDoc Validation Registry to help banks detect fraud in real-time.
DBS and Standard Chartered said in a statement that the pilot test helped reduce the chances of duplicate financing from different bank lenders for the same trade inventory. This, they added, will lead to greater trust and confidence among banks and traders.
This is only the latest effort by DBS in using blockchain to digitize trade finance. Only four months ago, the bank joined the blockchain network Contour, built over R3’s Corda, in order to modernize processes for the settlement of letters of credit.
Port of Rotterdam testing blockchain and AI for renewables trading
The Port of Rotterdam’s blockchain subsidiary, Blocklab, has been trialing a decentralized electricity trading system to help lower costs and optimize the use of renewables on its microgrid.
The system, called Distro, has been jointly developed by Blocklab and S&P Global Platts, and has been operational as a trial for two months.
Distro uses blockchain technology, smart contracts, and artificial intelligence to support the decentralized and high frequency trading of renewable energy by commercial consumers looking to optimize and manage their energy use. It matches demand with the intermittent power generated from different sources, specifically solar and battery storage.
Each market participant is allocated an AI energy trading agent that learns their behavior, choices, and needs and provides them with energy at the optimal price. Buyers and sellers can access localized and dynamic prices for energy and the system is designed to deter excessive power consumption when generation is low by offering lower prices when the supply is abundant. Blocklab says this builds upon “proven practices in commodities and financial market[s],” optimized through AI to automatically balance supply and demand.
The trial involved 20 million blockchain-validated, cleared and settled transactions, which cumulatively lowered the cost for commercial users by 11% and improving local renewables producers’ revenues by 14%.
Significantly, use of the system increased the consumption of on-site solar generation by 92%, which Blocklab argues can help to combat energy waste. Most ambitious is the claim that Distro could ostensibly help enterprises to deliver a “carbon reduction saving of up to 30 million tonnes.”
The Port of Rotterdam’s director of new business development and portfolio, Nico van Dooren, said:
Balancing local electricity needs with local generation holds the key to unlocking significant grid infrastructure savings. We are excited about the prospects of scaling this solution and the meaningful contribution it can make towards helping The Port of Rotterdam become carbon neutral by 2050.
Smart contracts are used in the high frequency trading system in order to enforce market rules, validate transactions, and manage digital identities. The immutable and transparent properties of blockchain, combined with provisions for privacy and cryptographic verification, will hold up to industry audit requirements, write Blocklab and S&P Global Platts.
A banking environment for virtual accounts used for transfers in the marketplace was provided for by ABN AMRO’s Banking-as-a-Service sandbox.
As Cointelegraph has previously reported, the Port of Rotterdam is no stranger to blockchain technology. This summer, the port launched a pilot to tokenize traditional shipping PINs, and has also been one of the major international ports to become involved with the blockchain logistics platform TradeLens.
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