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Why This Major Crypto Could Soon Crater to Early-2017 Lows

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Litecoin is one of many crypto tokens that has been struggling to garner any upwards momentum in recent times.

LTC has formed an incredibly close correlation to Bitcoin as of late, which has caused it to enter a long-held bout of sideways trading. Like BTC, it is currently trading at the lower boundary of this range and is beginning to flash some overt signs of weakness.

Analysts believe that its next big movement could prove to be dire for bulls, as it may plummet to levels not seen since early-2017.

There is one fractal pattern signaling that this next drop could be followed by a significant upside movement.

Its imminent decline, however, may be a symptom of the weakness that the cryptocurrency has seen relative to the rest of the markets in 2020. One trader is pointing out that it has been woefully underperforming many of its peers.

Litecoin Forms Close Correlation to Bitcoin But Severely Underperforms Crypto Market in 2020

At the time of writing, Litecoin is trading down just over 1% at its current price of $41. This is around the price level at which it has been hovering around for the past couple of days.

LTC’s over-month-long trading range has been established between $40 and $50, with the crypto only breaking above and below these boundaries on a few brief occasions.

This trading range has been formed in tandem with Bitcoin forming its range between $9,000 and $10,000.

Because Bitcoin and Litecoin have grown incredibly correlated as of late, it does appear that whether or not LTC breaks below $40 will depend on if the benchmark crypto is able to maintain above $9,000.

From a macro perspective, 2020 hasn’t been too great for Litecoin, as it is trading down nominally from where it started the year.

One analyst spoke about this in a recent tweet, explaining that LTC, Bitcoin Cash, and XRP have all been quite lethargic as of late, being unable to see “V-shaped” recoveries since the mid-March meltdown.

“Now if we look at the performance of the ‘Majors’ we’ve only really had ADA with a stronger return. Huge markup and the only one to have exceeded the Feb high. Weakness in recovery for BCH, LTC and XRP. Reduced % returns, rounding off and a huge distance from the Feb highs.”

Litecoin Crypto

Image Courtesy of Cold Blooded Shiller. Chart via TradingView.

LTC Likely to Decline to Early-2017 Lows Against Bitcoin

One analyst recently explained that he expects this underperformance to continue strong in the weeks ahead, potentially leading the crypto down to BTC price levels not seen since early-2017.

“LTCBTC: Can’t rule out another leg down. Would be a decent area to accumulate from,” he explained.

The same analyst also notes that this could form a similar fractal pattern to one seen a few years ago, signaling that this next decline could be just what is needed to kick off a parabolic uptrend.

Image Courtesy of TraderXO. Chart via TradingView.
Featured image from Shutterstock.
Charts from TradingView.

Source: https://www.newsbtc.com/2020/06/30/this-crypto-could-crater-to-2017-lows/?utm_source=rss&utm_medium=rss&utm_campaign=this-crypto-could-crater-to-2017-lows

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Recently-appointed Blockchain Australia CEO elaborates on the future for blockchain

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Steve Vallas, who was appointed to the top spot this month, speaks about the importance of revamping the perception of blockchain, its utility in the post-pandemic world, and more

Blockchain Australia, the end to end Blockchain Consulting and Technology company, recently appointed Steve Vallas as their Chief Operating Officer (CEO). In an interview with Coin Telegraph, the newly-appointed CEO explained his vision for the future of Blockchain Australia and the future direction of the industry.

Vallas said that building up public confidence in blockchain and improving the image of the technology among businesses and governments across the world topped his to-do list.

Steve Vallas replaces Nick Giurietto, who led Blockchain Australia for the last five years in the top spot. Vallas, who is a qualified lawyer and blockchain technology strategist, has worked as an industry coach and mentor for multiple universities and accelerator programs.

He is also the founder of the Australian marketing firm Honey Digital. Vallas has previously been part of the advisory team for governments on blockchain technology.

His main focus will be in improving the confidence of key industry leaders on blockchain technology by presenting it as a stable and well-developed solution. “It comes down to people’s definition of blockchain. Their views were formed during the 2017 period where a lot of scams and [poorly planned] projects failed,” he stated.

Vallas elaborated that blockchain is often considered synonymous with cryptocurrencies, but the use of the technology across different sectors is difficult to explain. Even today, many don’t understand how blockchain can benefit the supply chain, retail or legal sectors.

The pandemic presents a unique opportunity for the blockchain sector and the industry must take full advantage of it, Vallas claimed. He said that, “it [COVID-19] has highlighted the flaws in current systems” and the need to keep systems running without the constant need for human intervention.

Disruption in supply chains over the past few months has led organisations to be open to unorthodox solutions. Blockchain Australia must seize the opportunity to contribute to a post-pandemic future, he added.

The Australian Ministry for Industry, Science, Energy, and Resources, formulated a national strategy for capturing the potential of blockchain engagement in businesses called the National Blockchain Roadmap, earlier this year.

Vallas said that he aims to bring industry leaders, government officials, and other relevant parties to the same page with the new initiative. He added that the National Blockchain Project is viewed as a clear indication that the government is willing to work with blockchain leaders to develop a sustainable plan.

Source: https://coinjournal.net/news/recently-appointed-blockchain-australia-ceo-elaborates-on-the-future-for-blockchain/

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Bitcoin’s decoupling and reduced correlation enable small-cap asset rally

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The world of finance was shaken on March 12 when the markets started to realize the impact of COVID-19. Before the Black Swan event that engulfed most profits in the market, the cryptocurrency market had been rallying. Bitcoin, the largest digital asset that shares a strong correlation with most cryptocurrencies in the market. When the largest asset crashed, the plunge witnessed by other assets was also brutal. However, as the first half of 2020 ended with June, the dynamics in the market have flipped.

As Q1 painted a bloody picture across the crypto market, Q2 began with the excitement about the new developments and recovery set in the market. Up until May, the entire crypto market climbed steadily at a highly correlated growth rate. However, as May came to an end, only small-cap assets managed to keep up with the momentum. According to a report by Arcane, the small-cap assets rallied throughout Q2 and managed to gain 112%. Whereas the mid-cap assets maintained 50% growth, followed by Bitcoin at 44%, and lastly by other large-cap assets by 40%.

Q1 and Q2 brought different events in the market and the reaction from the market was at two extremes. As the first half culminated, the small-cap assets emerged winners with 141% growth, while mid-cap assets remained at 54%. The large-cap assets reported growth of just 29% and BTC could manage to report a growth of 27%.

The small-cap assets have managed to outperform not only Bitcoin but other indices too. This was due to the decoupling of small-cap assets from the rest of the market. The driving factors for coins like OmiseGo, Theta Token, and Icon were news about its development and even its listing on prominent exchanges. However, for the large-cap assets, the investors were too occupied by the imminent pressure in the bitcoin market.

The correlation between the small-cap assets and Bitcoin has also been weakening. Small-cap asset, OmiseGo’s [OMG] correlation with BTC peaked in May 2020 at 0.8895 and currently stands at 0.7256. Thus, the small-cap assets were rallying independent of the ups and downs in the bitcoin market.

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Source: https://eng.ambcrypto.com/bitcoins-decoupling-and-reduced-correlation-enable-small-cap-asset-rally

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VeChain Crypto Hits YTD High in Latest Intraday Rally; What’s Next

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  • VeChain (VET) hit a year-to-date high (YTD) during the Friday trading session.
  • The 24th largest blockchain asset rose 8.57 percent to 114 sats, bringing its YTD gains up by more than 85 percent.
  • Nevertheless, the VET/BTC uptrend is showing signs of cooling off, albeit holding a string of dependable support levels underneath.

VeChain’s crypto token VET rose 8.57 percent on Friday to hit its year-to-date high at 114 sats.

Traders flocked to the 24th largest cryptocurrency due to unfound reasons. But its intraday rally coincided with a review from Early Metrics on VeChain’s potential as a startup.

Praises

The globally renowned rating agency called the blockchain company as one of the fastest-growing startups, praising its growth logic, market positioning, and operational implementation. The favorable review appeared as VeChain powered a drug traceability platform for Bayer China, one of the world’s largest pharmaceutical firms in late May 2020.

The word-of-mouth visibly helped VeChain’s native crypto asset VET painting an incredible rally on Thursday. The climb also came as a part of a 200 percent rebound from the token’s March 2020 lows.

The blockchain industry is still at its nascent stage. But traders anticipate specific projects to utilize the distributed ledger to its full potential. And when some of these startups receive recognition by existing tech firms, they tend to attract traders to purchase the asses that back their blockchains.

VET, it appears, rose on a similar sentiment.

VeChain Technical Outlook

Another reason why traders preferred to migrate their capital into the VeChain market is an annoying Bitcoin. The benchmark cryptocurrency stands stuck in a $1,000-wide trading range for the last three weeks. Meanwhile, its price moves this week remains capped inside a $5,00-range.

vechain, cryptocurrency, vet, crypto

VeChain breaking out of a Bullish Pennant. Source: TradingView.com

VET appears at an advantage against an underperforming Bitcoin. The crypto has just broken out of a Bullish Pennant structure that puts it en route to a fresh upside target towards 129-132 sats. Incidentally, the resistance area also coincides with the 78.6% Fibonacci level on the retracement from 158-high to 35-low.

The crypto token’s bullish bias is also gaining strength from a string of concrete support levels. At first, VET/BTC is trading above its 20-EMA (the green wave) and 50-SMA (the blue wave). Moreover, it is holding an incredible price floor at around 88 sats.

Despite the bullish signs, there remain risks of a downside correction as well, especially when Bitcoin starts rebuilding its upside scenario. Should that happen, VeChain would test all the support levels for a potential pullback.

Source: https://www.newsbtc.com/2020/07/03/vechain-hits-2020-high-intraday-rally/?utm_source=rss&utm_medium=rss&utm_campaign=vechain-hits-2020-high-intraday-rally

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