Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP

Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP

Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.

Dogecoin’s (DOGE) recent pump and dump caused several new traders who bought due to FOMO to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing.

A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan. 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions.

Crypto market data daily view. Source:Coin360

Stack Funds head of research Lennard Neo believes the Bitcoin miners are selling on rallies and that trend may continue as the Chinese New Year holiday approaches. Neo expects Bitcoin’s price to remain volatile in the near term.

Even as Bitcoin’s price consolidates, the decentralized finance tokens continue to surge, which suggests traders’ focus has shifted to the DeFi space. Let’s analyze the charts of the top-5 cryptocurrencies that could trend in the next few days.

BTC/USD

Bitcoin’s long wick on Jan. 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick pattern on Jan. 30, indicating indecision among the bulls and the bears.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to push the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).

If they succeed, the BTC/USD pair may drop to the 50-day simple moving average ($30,631) and then to $28,850.

A breakdown and close below $28,850 will complete the bearish descending triangle pattern that has a target objective at $15,741. However, it is unlikely to be a straight fall because the bulls will try to arrest the decline at the 50% Fibonacci retracement level at $25,897.42 and again at the 61.8% retracement at $22,106.73.

This negative view will invalidate if the price turns up from the current level or rebounds off the $28,850 support and sustains above the downtrend line. Such a move will suggest strong accumulation at lower levels, which could result in a rise to $40,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the breakout above the downtrend line met with strong selling pressure and the price quickly retracted back into the triangle.

The failure of the bulls to push the price back above the downtrend line has attracted selling and the bears have pulled the price below the 20-EMA. The bulls are currently attempting to defend the 50-SMA but if this support also cracks, the pair may start its journey towards $28,850.

This negative view will invalidate if the price rebounds off the current level and rises above the downtrend line. Such a move could push the price to $38,519.63.

ETH/USD

Ether (ETH) broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given up much ground in the past few days. This shows the bulls are accumulating on dips.

ETH/USDT daily chart. Source: TradingView

The ETH/USD pair had formed a Doji candlestick pattern on Jan. 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now drop to the 20-day EMA ($1,253), which is likely to act as strong support.

A bounce off the support will suggest the sentiment remains bullish and traders are buying on dips. The bulls will then try to resume the uptrend. If the bulls can drive the price above the $1,400 to $1,473.096 resistance zone, the pair could rally to $1,675 and then to $2,000.

This bullish view will invalidate if the bears sink the price below the 20-day EMA and the uptrend line. In such a case, the pair may drop to the 50-day SMA ($990).

ETH/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle pattern, which will complete on a breakout and close above $1,440. This bullish setup has a target objective of $1,768.

However, the moving averages have flattened out and the relative strength index (RSI) is just below the midpoint, which suggests a balance between supply and demand.

If the bears sink the price below the support line of the triangle, it will invalidate the pattern. The next support on the downside is the uptrend line and then $1,050.

UNI/USD

Uniswap (UNI) is in a strong uptrend that has pushed the RSI deep into the overbought territory. While the RSI can remain overbought for an extended period, traders should be cautious as corrections from overbought levels can be swift and sharp.

UNI/USDT daily chart. Source: TradingView

The first support on the downside is the 38.2% Fibonacci retracement level at $15.3963. If the price rebounds off this level, it will suggest the bulls are aggressively buying the dips and are not waiting for a deeper correction to enter.

If the bulls can push the price above $20.5612, the UNI/USD pair could rally to $28 and then to $32. Both moving averages are rising and the RSI is above 79, indicating the bulls are in control.

However, if the correction deepens below $15.3963, the next support is at the 20-day EMA ($11.85), which is near the 61.8% Fibonacci retracement level at $12.2054. A deeper fall usually delays the start of the next leg of the uptrend.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has made a flag pattern. If the bulls can push the price above the flag, the uptrend could resume and the pair may rally to $22 and then to $25.

Another possibility is that the pair continues to correct and drop to the 20-EMA. If the price rebounds off this support, it will suggest the sentiment remains positive and the bulls are buying on minor dips.

During the current leg of the uptrend, the price has repeatedly taken support at the 20-EMA. Therefore, a break below the 20-EMA will suggest the bullish sentiment may be waning and could result in a drop to $15.3963 and then to the 50-SMA.

TOM/USD

Cosmos (ATOM) has formed a cup and handle pattern that will complete on a breakout and close above $8.877. If the bulls can propel the price above the $10.20 resistance, the uptrend could begin.

ATOM/USDT daily chart. Source: TradingView

The first target on the upside is $11.151 and the next level to watch out for is $13.554. The rising moving averages and the RSI’s bounce from the midpoint suggest the bulls have the upper hand.

If the bears sink the price below the 20-day EMA ($7.65), the ATOM/USD pair may remain range-bound between $6.603 and $8.877 for a few more days.

The bullish assumption will be negated if the bears sink and sustain the price below the 50-day SMA ($6.4). Such a move may pull the price down to $5.50 and then to $4.50.

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls have pushed the price above the downtrend line of the descending triangle. This has invalidated the bearish setup but the bulls are struggling to thrust the price above the $8.877 resistance.

The flat moving averages and the RSI near the midpoint suggest the pair may remain range-bound between $8.877 and $6.726 for some more time. If the bulls can propel the price above $8.877, the pair could rise to $10.20, while a break below $6.726 will suggest the bears are trying to make a comeback.

COMP/USD

Compound (COMP) completed a rounding bottom pattern on Jan. 29 when it broke and closed above the $272.61 resistance. This reversal setup has a target objective of $464.60.

COMP/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought territory suggest bulls are in command. After the breakout from a pattern, the price usually retraces and retests the breakout level, but if the trend is very strong, it only consolidates or enters a minor correction before resuming the up-move.

If the COMP/USD pair rebounds off $272.61, it will suggest the bulls have flipped the previous resistance into support. That could then act as a launchpad for the next leg of the uptrend.

This positive view will invalidate if the bears sink and sustain the price below $272.61. Such a move will indicate profit-booking at higher levels and a lack of buying on dips.

COMP/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows traders booked profits near $340 but the correction was short-lived as the price turned up from $304.84. If the bulls can now drive the price above $340, the pair may rally to $405.

On the other hand, if the price again turns down from $340, the pair may drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to resume the up-move, but if the bears sink the pair below the 20-day EMA, a drop to $272.61 will be on the cards.

Title: Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Sourced From: cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-eth-uni-atom-comp
Published Date: Sun, 31 Jan 2021 20:20:28 +0000

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Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP was originally published here https://businessnewsideas0.blogspot.com/2021/01/top-5-cryptocurrencies-to-watch-this_31.html

Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B

Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B
Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B

On Jan. 30 Uniswap (UNI) and Compound (COMP) both rallied to new all-time highs as the entire DeFi sector continued to heat up. UNI soared to a new all-time high at $19.93 and COMP price did the same as it briefly traded at $340. 

COMP/USDT 4-hour chart. Source: TradingView

In the past 30 days the entire decentralized finance sector has been in a strong uptrend and data from DeFi Pulse shows the total value locked has soared from $16.43 billion on Jan. 2 to a new all-time high at $27.67 billion on Jan. 30.

Total value locked in DeFi. Source: Defi Pulse

The surge in COMP price follows the recent release of a new governance module and upgrade to the comp.vote interface which now allows community members to save on gas fees by voting by signature instead of on-chain transactions.

DeFi becomes more attractive after the Robinhood debacle

This week’s controversy surrounding investment brokerages halting the markets for GameStop and AMC stock has presented DeFi and crypto exchanges as a possible alternative to the centralized traditional finance sector.

In a tweet, Compound founder, Robert Leshner said the recent developments showed that “the long-term answer” to the time it takes for trades to settle with the Depository Trust & Clearing Corporation (DTCC), “is for markets to run on blockchains.”

Leshner said:

“Instant settlement would eliminate most of the complexity, cost, and capital requirements which plague T+2 settlement. Robinhood wouldn’t have credit obligations, or the need to turn against their own customers.”

Uniswap grants program launch backs UNI’s rally

Uniswap DEX 24-hour trading volume. Source: Uniswap

Uniswap’s grants program was unveiled on Jan. 20 as a way to help expand the exchange’s ecosystem.

Developers interested in participating now have a chance to submit a proposal and receive funding for the development of a project that adds value to the overall platform. According to Uniswap’s Twitter feed, there were “40 grant submissions to @uniswapgrants in the 14 days since applications opened up.”

UNI/USDT 4-hour chart. Source: TradingView

Since the release of the grants program, the price of UNI has increased 160% from $7.10 on Jan. 21 to its current price of $18.51. Uniswaps rising TVL, daily transaction volume and investor’s excitement over the upcoming v3 launch are additional factors backing UNI’s surge to a new all-time high.

Title: Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B
Sourced From: cointelegraph.com/news/uniswap-uni-and-compound-comp-hit-new-highs-as-defi-tvl-reaches-27-6b
Published Date: Sun, 31 Jan 2021 03:18:19 +0000

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Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B
Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B was originally published here https://businessnewsideas0.blogspot.com/2021/01/uniswap-uni-and-compound-comp-hit-new.html

XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’

XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’
XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’

XRP price underwent a strong 86% breakout in the early trading hours on Jan. 30 as the fourth-ranked cryptocurrency by market cap became the new coin of focus in the r/Wallstreetbets cryptocurrency-focused off-shoot r/Satoshistreetbets. 

Data from Cointelegraph Markets and TradingView shows that XRP rose from $0.28 to a peak at $0.51 before profit selling pulled the price back to $0.41.

XRP/USDT 15 minute chart. Source: TradingView

It appears that the antics of the past week which saw r/Wallstreetbets pump GameStop, AMC and Dogecoin (DOGE), have carried over into the weekend as Stellar (XLM) also saw its price pump in tandem with XRP.

After rallying more than 800%, DOGE price is now down 71% from its recent all-time high of $0.078 on Jan. 29. Data from TheTIE also shows that the rally in XRP price coincided with a drastic jump in tweet volume.

XRP price vs. Tweet volume. Source: TheTIE

Stellar (XLM) has also received some attention from r/Satoshistreetbets, resulting in a price spike of 64% on Jan. 27 which saw the price of XLM reach as high as $0.38 before correcting to its current value of $0.318.

XRP’s legal woes may place a damper on the rally

In the past few months, XRP price has been hard hit due to a lawsuit filed against Ripple by the U.S. Securities Exchange Commission (SEC). The SEC alleges that the company is conducting an ongoing illegal securities offering as Ripple still periodically sells XRP tokens out of the treasury.

Ripple recently filed a Freedom of Information Act request with the SEC seeking documents pertaining to Ethereum co-founders.

The company is demanding to know why Ether (ETH) isn’t considered a security and said that the government body “clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether.”

Title: XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’
Sourced From: cointelegraph.com/news/xrp-price-gains-86-after-wall-street-bets-crypto-wing-says-pump-it
Published Date: Sat, 30 Jan 2021 19:44:48 +0000

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XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’
XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’ was originally published here https://businessnewsideas0.blogspot.com/2021/01/xrp-price-gains-86-after-wall-street.html

FTX Token (FTT) rallies 105% as interest in derivatives trading grows

FTX Token (FTT) rallies 105% as interest in derivatives trading grows
FTX Token (FTT) rallies 105% as interest in derivatives trading grows

FTX is a cryptocurrency derivatives exchange backed by Alameda Research, a quantitative trading firm and crypto liquidity provider. 

The exchange launched in April 2019 and offered the usual spot trading, inverse swaps and futures contracts that can be found at other major platforms. By early 2020, the exchange launched its daily and weekly binary BTC options markets.

FTT/USDT daily chart. Source: TradingView

FTT is the exchange’s native token and it’s issued on the Ethereum blockchain. FTT stakers are granted a trading fee discount based on a tiered system and other benefits include bonus votes in their polls and increased airdrop rewards.

The first airdrop took place in August 2020 when 500 million Serum (SRM) tokens were distributed to FTT holders. To differentiate itself from competitors, the users’ collateral is shared in one universal stablecoin wallet.

This means traders can reduce their margin requirements drastically. Numerous leveraged tokens mimicking leveraged ETF stocks have also been listed, including 3x Long Bitcoin and 3x Short Litecoin.

Leveraged tokens are derived from the exchange’s perpetual swap contracts and operate as tradeable ERC-20 tokens that can be withdrawn and traded. These innovative products have made the FTX a popular exchange among investors, as reflected by its rising futures contracts open interest.

Global markets aggregate open interest. Source: coinalyze.net

As shown above, the figure grew by 340% over the past six months, surpassing the $2 billion mark to vastly outperform more established exchanges.

In November 2020, the exchange ventured into tokenized equity trading, albeit not available for its U.S. citizens. Its partner CM-Equity custody the tokens redeemable for the underlying stocks. Interestingly, it’s allowed its users to buy less than one share, which is particularly useful for high-priced stocks like Amazon ($AMZN) and Google ($GOOG).

In December, FTX continued to innovate by launching pre-IPO futures contracts for AirBNB and Coinbase. These contracts allow traders to speculate on what price those companies will list on a stock exchange. The exchange also offers trading for thematic products, including a basket of cannabis-related listed stocks.

By creating multiple markets with enough liquidity provided by its market-making structure, the exchange was able to gather attention from a new client base. More recently, a Wall Street Bets index was launched, including GameStop ($GME), Dogecoin (DOGE), and iShares Silver Trust ($SLV).

Backed by these popular offerings, FTX Token (FTT) price has doubled since the beginning of 2021.

FTX Token (FTT) token price at Binance. Source: TradingView

To further incentivize holding the token, FTX repurchases and burns 33% of all fees generated from the exchange and 10% of its insurance fund net additions. This process will continue until half of the initial 350 million supply are destroyed.

While this may appear like a deflationary schedule, there are 31.25 million tokens allocated to the team, representing at least 17.8% of the targeted 175 million circulating supply. Regardless, considering the current $11.70 token price, its market capitalization after the burn process is completed surpasses $2 billion.

This number represents a 45% discount to Binance Coin’s (BNB) projected 2031 market capitalization, according to data from Messari. This is also roughly in line with the exchanges’ aggregate open interest $4.26 billion to $2.0 billion difference .

Interestingly, Binance has an undisclosed investment in FTX, and this may be creating fewer incentives for direct competition.

Currently, it seems that the market is pricing both tokens at the same valuation. Binance appears to be expanding its ecosystem via its Binance Smart Chain decentralized exchange, their blockchain projects incubator and a successful token launchpad platform.

FTX, on the other hand, is focused on being the market-leader of derivatives products innovation.

Currently all of these projects are producing value for token holders and with the burn schedule and rising popularity among derivatives exchanges it’s possible that FTT will continue to see further price appreciation.

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.

Title: FTX Token (FTT) rallies 105% as interest in derivatives trading grows
Sourced From: cointelegraph.com/news/ftx-token-ftt-rallies-105-as-interest-in-derivatives-trading-grows
Published Date: Sat, 30 Jan 2021 21:45:01 +0000

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FTX Token (FTT) rallies 105% as interest in derivatives trading grows
FTX Token (FTT) rallies 105% as interest in derivatives trading grows was originally published here https://businessnewsideas0.blogspot.com/2021/01/ftx-token-ftt-rallies-105-as-interest.html

GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30

GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30
GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30

Title: GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30
Sourced From: cointelegraph.com/magazine/2021/01/30/gamestop-wont-stop-robinhood-cheats-musk-tweets-hodlers012430
Published Date: Sat, 30 Jan 2021 20:27:04 +0000

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GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30
GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30 was originally published here https://businessnewsideas0.blogspot.com/2021/01/gamestop-mayhem-robinhood-scandal-musk.html

Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches

Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches
Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches

On Jan. 29 Bitcoin (BTC) price briefly rallied to $38,500 before retracing the move and spending the majority of the day struggling to reclaim $35,000. 

The wild breakout in Bitcoin price has partially been attributed to Elon Musk changing his Twitter profile to simply “#Bitcoin,” which Musk subsequently followed up with a cryptic tweet saying “In retrospect, it was inevitable.”

Dogecoin (DOGE) also continued to make waves across Twitter and with crypto traders. After reaching a new all-time high at $0.078 on Jan. 28, DOGE price corrected by 41% before rebounding to trade at $0.045.

Daily cryptocurrency market performance. Source: Coin360

Developments related to DOGE and r/Wallstreetbets led FTX crypto exchange to create a Wall Street Bets (WSB) index which tracks the price of Nokia (NOK), BlackBerry (BB), AMC Theaters (AMC), GameStop (GME), Silver (SLV), DOGE, and the FTX Token (FTT) using a weighted average of their prices.

The exploits of the popular Reddit group have also not gone unnoticed by the United States Securities and Exchange Commission, which announced that it will be taking a closer look at how Robinhood handled the trading of GME stock on its platform.

Bitcoin price holds strong despite miners selling

Despite the recent volatility, institutional investors continue to show an increased interest in Bitcoin and are willing to pay a premium to get exposure to CME’s Bitcoin futures contracts.

Even selling pressure from Bitcoin miners, who have been selling at levels not seen since BTC price topped out at $14,000 in July 2019, has not been able to satisfy increasing demand. Unlike previous years, mass selling from miners is not negatively affecting the long-term price of BTC, as shown by data from CryptoQuant.

Bitcoin miner’s outflow. Source: CryptoQuant

According to Lennard Neo, the head of research at Stack Funds, the current miner sell-off is likely to continue in the near-term due to the upcoming Chinese New Year holiday.

Neo said:

“Miners are increasingly exiting their positions as the holiday approaches. This also suggests that the floor price for which miners are comfortable holding Bitcoins has yet to be found and we expect this volatility to persist in the coming weeks.”

Growing interest from institutions and the emergence of DeFi are big drivers of Bitcoin price growth. As the market heads into the Chinese New Year holiday, the key level of support to watch is now $34,000 while a move higher is likely to face resistance at $38,000.

The $4.9 billion worth of BTC futures that expired on Jan. 29 appears to have little effect on the market as this past week’s Robinhood ordeal is bringing more attention to the cryptocurrency industry.

The traditional markets faced a new wave of pressure which led to the worst weekly performance for the S&P 500. The Dow, NASDAQ and S&P 500 all finished the day negative, down 2.03%, 2.0% and 1.93% respectively.

ltcoins show signs of growth

While Bitcoin price struggled to hold the $34,000 level, DOGE made its way into the top-10 and a number of altcoins saw bullish breakouts.

XRP and Stellar (XLM) have both rose by roughly 9% in the past 24-hours, while Voyager Token (VGX) continued to climb higher, currently up 70% and trading at $1.77.

BTC/USD daily chart. Source: Coin360

The overall cryptocurrency market cap now stands at $1.01 trillion and Bitcoin’s dominance rate is 63.5%.

Title: Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches
Sourced From: cointelegraph.com/news/analyst-says-bitcoin-price-sell-off-may-occur-as-chinese-new-year-approaches
Published Date: Sat, 30 Jan 2021 01:49:05 +0000

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Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches
Analyst says Bitcoin price sell-off may occur as Chinese New Year approaches was originally published here https://businessnewsideas0.blogspot.com/2021/01/analyst-says-bitcoin-price-sell-off-may.html

World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?

World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?

Bitcoin (BTC) has been correcting since the peak high at $42,000. However, this correction might have ended as a significant momentum shift occurred in recent days. 

The GameStop debacle raised many questions about big parties’ trustworthiness and exchanges, after which more and more people started to claim that decentralization is the future.

Among these people is Elon Musk who is worth nearly $183 billion, according to Forbes making him the world’s richest person. The Tesla CEO included #Bitcoin in his Twitter profile and also wrote “in retrospect, it was inevitable.” A very cryptic message to his 44 million followers, which some may interpret as Musk investing in Bitcoin.

In retrospect, it was inevitable

— Elon Musk (@elonmusk) January 29, 2021

However, this tweet and profile change from Elon Musk prompted a new rally on Jan. 29 with price surging from $32,500 to $38,000 in a matter of minutes. The primary questions now are: does this mean the bull market is continuing and will BTC see new all-time highs?

Bitcoin holds key $30,000 level

XBT/USD 2-hour chart. Source: TradingView

The 2-hour chart shows a clear bullish breakout after holding the significant support zone at $30,000.

The critical breaker for bullish continuation was to find support at $30,000, which happened in recent days. Since then, the next step for bullish continuation would be a breakout above the $34,000 resistance zone.

As the chart shows, and largely thanks to Elon Musk’s tweet, the breakout was confirmed, and Bitcoin started to accelerate heavily. The next level to break is $37,600-38,000 as that’s the next area of significant liquidity.

Currently, Bitcoin’s price is trying to crack that level of resistance at $38,000. If this area flips for support, a further bullish continuation toward the all-time highs will likely occur, and $50,000 comes into play. 

Total market cap makes a new all-time high

Total cryptocurrency market cap 1-week candle chart. Source: TradingView

The total cryptocurrency market capitalization has reached new all-time highs in the past 24 hours, accelerating to the $1.13 billion level.

However, the total market capitalization and the price of Bitcoin are still far away from the 21-Week MA. That 21-Week MA often sees a support test before continuing upward.

Therefore, the levels to watch for the total market cap are still the same as before. If the market can’t continue going up from here, $730 billion will be the focus as that would grant a perfect support/resistance flip from the previous all-time high.

BTC/USD 1-week chart. Source: TradingView

The weekly chart shows an apparent bullish cycle and a big gap between the 21-Week MA and the current price. These two often come back to each other to get the markets back to the “mean” of the price movement.

Thus, such a correction would bring the price of Bitcoin to the $25,000 region in the coming weeks. In the end, as long as Bitcoin remains above the 21-Week MA, the continuation of this bull market is very likely.

Critical levels to watch for Bitcoin

XBT/USD 3-hour chart. Source: TradingView

Currently, the price of Bitcoin is trying to break through the resistance at $38,000. If that breaks, a continuation toward a new all-time highs seems inevitable, as $40,500 is the only level to watch after $38,000.

In that perspective, even price targets of $45,000 and $50,000 are on the table. However, if Bitcoin’s price can’t break through the $38,000 area, a renewed retest of the $34,000 zone should be expected.

If that doesn’t hold for support, a sharp fall toward the lows may occur along with more range-bound price action. Nevertheless, this would not be unhealthy for the market from a wider perspective.

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.

Title: World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
Sourced From: cointelegraph.com/news/world-s-richest-man-elon-musk-boosts-bitcoin-price-by-20-is-40k-back-in-play
Published Date: Fri, 29 Jan 2021 14:43:51 +0000

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World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play? was originally published here https://businessnewsideas0.blogspot.com/2021/01/worlds-richest-man-elon-musk-boosts.html

Sovryn Raises $2.5M In Token Pre-Sale

Sovryn Raises $2.5M In Token Pre-Sale
Sovryn Raises $2.5M In Token Pre-Sale

Sovryn, a Bitcoin-based decentralized finance (DeFi) protocol, announced that they have officially raised $2.5 million in their token pre-sale. The pre-sale was reserved for its community, wherein they got first dibs on the SOV token.

Sovryn will launch the tokens next month. A month back in December, Sovryn had raised $2.1M from venture firms like Collider Ventures and Monday Capital.

Long-term Development Preferred Over Short-term Gains

The capital raised is earmarked for further developing the Sovryn protocol, the overall security, and a buy bounty program. Sovryn co-founder Edan Yago said that the community governance would decide how to utilize the funds. The participants also have the right to cancel pre-reservation, but they have refused to do so. Plus, the funds raised will be locked up for 10 months, adding further credence to their long-term development commitment.

What Is Sovryn?

Sovryn is a Bitcoin-based, DeFi protocol that runs on Rootstock (RSK) – a merge-mined sidechain with Bitcoin. It offers a variety of services like swaps, lending, leveraged trading, and market-making. Sovryn’s transaction fees are around 30 to 100 times cheaper than your average Ethereum-based DeFi protocols. Despite being Bitcoin-based, Sovryn also supports Ethereum tokens.

Is Bitcoin-Based DeFi Any Good?

While DeFi apps are often associated with Ethereum, protocols like Rootstock allow developers to create DeFi applications on the Bitcoin blockchain as well. This is pretty interesting since it’s an ideal win-win situation. Being the oldest and the most secure blockchain in the world, Bitcoin offers a robust and stable platform for DeFi developers to do their thing. Plus, since DeFi is the hottest thing in the market right now, DeFi apps could bring in a lot of utility and a fresh user-base to the Bitcoin blockchain.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Title: Sovryn Raises $2.5M In Token Pre-Sale
Sourced From: cryptodaily.co.uk/2021/01/sovryn-pre-sale
Published Date: Fri, 29 Jan 2021 08:43:35 +0000

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Sovryn Raises $2.5M In Token Pre-Sale
Sovryn Raises $2.5M In Token Pre-Sale was originally published here https://businessnewsideas0.blogspot.com/2021/01/sovryn-raises-25m-in-token-pre-sale.html

Crypto in the Philippines: Necessity is the mother of adoption

Crypto in the Philippines: Necessity is the mother of adoption
Crypto in the Philippines: Necessity is the mother of adoption

Title: Crypto in the Philippines: Necessity is the mother of adoption
Sourced From: cointelegraph.com/magazine/2021/01/29/crypto-in-the-philippines-necessity-is-the-mother-of-adoption
Published Date: Fri, 29 Jan 2021 06:26:22 +0000

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Crypto in the Philippines: Necessity is the mother of adoption
Crypto in the Philippines: Necessity is the mother of adoption was originally published here https://businessnewsideas0.blogspot.com/2021/01/crypto-in-philippines-necessity-is.html

Crypto in the Philippines: Necessity is the mother of adoption

Crypto in the Philippines: Necessity is the mother of adoption
Crypto in the Philippines: Necessity is the mother of adoption

Title: Crypto in the Philippines: Necessity is the mother of adoption
Sourced From: cointelegraph.com/magazine/2021/01/29/crypto-in-the-philippines-necessity-is-the-mother-of-adoption
Published Date: Fri, 29 Jan 2021 06:26:22 +0000

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Crypto in the Philippines: Necessity is the mother of adoption
Crypto in the Philippines: Necessity is the mother of adoption was originally published here https://businessnewsideas0.blogspot.com/2021/01/crypto-in-philippines-necessity-is.html

Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink

Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink
Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink

The oracle platform got one of its biggest political endorsements yesterday. It didn’t even have to pay for it.

Chainlink adoption

Hillary Schieve, the mayor of Reno, Nevada, pushed for the adoption of oracle protocol Chainlink in a tweet yesterday. She became one of the first-ever politicians to publicly endorse the platform.

Absolutely come to @CityofReno! Let us show you around @EDAWNReno with @douglas_erwin

Sorry @FrancisSuarez you should have bought $LINK
still a gift 1000EOY

PS: Our skiing is also epic today in @renotahoe https://t.co/4s1jFnc39c

— Mayor Hillary Schieve (@MayorSchieve) January 27, 2021

Chainlink is the world’s biggest oracle provider, with its settlement token LINK valued at over $9.4 billion as of press time. Oracles are third-party data tools that fetch data from outside a blockchain to within it, as blockchains can not—by design—verify the authenticity of the incoming data even though they are immutable stores of data. 

Using Chainlink helps avoid this. The oracle service fetches data from multiple providers to provide a single, synchronized feed to clients and users. Doing so allows other applications to work seamlessly without depending on a single (or doctored) data supplier.

And it’s a project that Schieve is now endorsing. She said in a tweet yesterday, “The time is now to work on great projects for Nevada. $LINK,” a statement that affirmed some earlier tweets which suggested that she even held LINK tokens.

Chainlink can find many use cases in Reno. ChainLinkGod, an early-adopter of Chainlink and a popular community ambassador, noted that apart from oracle usage for weather, health, and traffic (replying in the affirmative to another tweet), a potential Chainlink node could be used towards maintaining a record of the local government.

The anonymous frog said:

“A Reno Chainlink node could also provide an immutable record of all government actions, increasing transparency and community trust in the information.”

Exactly, there is an entire world of data waiting to be brought on-chain, a Reno Chainlink node could also provide an immutable record of all government actions, increasing transparency and community trust in the information

— ChainLinkGod.eth (@ChainLinkGod) January 27, 2021

Crypto friendly politicians in the US

The brief discussion wasn’t sudden for Schieve, who has remained the Reno mayor since 2014 as an independent candidate. She has previously called for the betterment of society using technology and even opened up to crypto donations before her reelection campaign in 2018.

Meanwhile, Scheive’s endorsement for Chainlink wasn’t the only crypto story to have emerged from a politician. Elsewhere in Miami, city major Francis Suarez uploaded the Bitcoin whitepaper to the city’s government site, becoming the first US local government to do so.

The City of Miami believes in #Bitcoin and I’m working day and night to turn Miami into a hub for crypto innovation.

Proud to say Miami is the first municipal government to host Satoshi’s White Paper on government site. @balajis @tyler @cameron @APompliano pic.twitter.com/DBOni23ynY

— Mayor Francis Suarez (@FrancisSuarez) January 27, 2021

The file was uploaded in response to an ongoing legal campaign by Craig Wright, the co-founder of Bitcoin SatoshiVision who claims to be the inventor of Bitcoin (he has failed to provide any conclusive proof of these claims thus far).

As CryptoSlate reported last week, Wright is taking down Bitcoin whitepapers hosted on several websites by claiming it to be his property. In response, several influential figures, such as Suarez (and later even Schieve) , have uploaded the Bitcoin whitepaper on their own sites.

The post Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink appeared first on CryptoSlate.

Title: Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink
Sourced From: cryptoslate.com/reno-nevada-mayor-hillary-schieve-pushes-the-government-to-adopt-chainlink/
Published Date: Thu, 28 Jan 2021 13:36:43 +0000

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Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink
Reno, Nevada Mayor Hillary Schieve pushes the government to adopt Chainlink was originally published here https://businessnewsideas0.blogspot.com/2021/01/reno-nevada-mayor-hillary-schieve.html

Why a trader says a Bitcoin bottom is close, based on a key technical structure

Why a trader says a Bitcoin bottom is close, based on a key technical structure
Why a trader says a Bitcoin bottom is close, based on a key technical structure

Scott Melker, a cryptocurrency trader and the author of The Wolf Den Newsletter, believes a short-term Bitcoin bottom is close.

Melker often uses the relative strength index (RSI) indicator on the 4-hour and 6-hour candle chart time frames to identify potential trend reversals.

The RSI is an indicator that is used to evaluate whether an asset is overbought or oversold. If the RSI is over 75, the asset is overbought, and if it is under 30, it is oversold.

Bitcoin not oversold, but the bottom is likely soon

Technically, Melker explained that Bitcoin is not yet oversold, at least on the 6-hour time frame.

But, a bullish divergence with the RSI has been confirmed, Melker said. The 12-hour candle chart would also soon confirm the same structure, which would be positive for BTC in the near term. He wrote:

“6 hour bull div with RSI confirmed. 12 hour likely to confirm in 40 minutes. We had iffy divs on lower time frames yesterday building to these. Neither reached oversold. Can still drop and make larger div, but bottom ‘should’ be in or close. Should.”

6-hour price chart of Bitcoin. Source: BTCUSD on TradingView.com

There are also fundamental reasons why a short-term Bitcoin relief rally could occur.

First, yesterday, on January 27, the premium of Bitcoin on Coinbase rose significantly, reaching $200 at one point.

Although the price of Bitcoin naturally trades slightly higher on Coinbase than usual, this indicates that high-net-worth investors were aggressively accumulating the dip.

This trend explains the swift trend reversal Bitcoin saw under $30,000, recovering to around $31,000 within several hours.

Whales are likely trying to defend the $30,000 support area from being broken, as breaking below $30,000 would result in a more complex correction.

What happens next?

A pseudonymous trader known as “Salsa Tekila” said the current price action reminds him of September 2020.

At the time, Bitcoin seemed to be breaking down, but a bullish engulfing daily candle caused a trend reversal, leading the BTC rally. He said:

“The $BTC price action observed yesterday reminds me of September 24, 2020. I was massively short that day, betting on a break-down. The sell-side got BTFO impulsively after dip buyers show up. Someone big had bought. I see similarities with the 30k vicinity. Could be wrong.”

In the foreseeable future, Bitcoin overtaking the $33,000 level is critical for a short-term resumption of the rally. Until BTC solidifies $33,000 as a support level once again, the trend remains neutral to bearish.

But one positive trend is that stablecoin deposits to exchanges are rising once again. This shows that sidelined capital is moving back into the Bitcoin market, which could result in a short-term catalyst for BTC.

The price of Bitcoin already rose from around $30,500 to over $31,500 as stablecoin deposits rose.

The post Why a trader says a Bitcoin bottom is close, based on a key technical structure appeared first on CryptoSlate.

Title: Why a trader says a Bitcoin bottom is close, based on a key technical structure
Sourced From: cryptoslate.com/why-a-trader-says-a-bitcoin-bottom-is-close-based-on-a-key-technical-structure/
Published Date: Thu, 28 Jan 2021 13:36:40 +0000

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Why a trader says a Bitcoin bottom is close, based on a key technical structure
Why a trader says a Bitcoin bottom is close, based on a key technical structure was originally published here https://businessnewsideas0.blogspot.com/2021/01/why-trader-says-bitcoin-bottom-is-close.html