Top 5 Cryptocurrencies to Watch This Week: ETH, XTZ, LINK, BNB, DASH
With Bitcoin’s (BTC) halving less than 23 days away, traders would like to go into the event with strong bullish sentiment but this is yet to be determined. If Bitcoin is able to breakout and sustain above its overhead resistance, it is likely to pull the crypto markets higher. The first sign of strength would be if the total market capitalization can sustain above the $211 billion mark.
Crypto market data daily view. Source: Coin360
Although Bitcoin is the leader, there are a few altcoins that are showing promise and could outperform the largest cryptocurrency next week. Here are the top 5 cryptocurrencies that could offer short-term trading opportunities in the next few days.
After repeatedly facing resistance at $176.103 (shown via ellipses on the chart), Ether (ETH) broke out of the overhead resistance on April 18 with strength. This is a positive sign as it shows that the bulls are keen to buy at every higher level.
ETH-USD daily chart. Source: Tradingview
Both the 10-day EMA ($169) and the 20-day SMA ($158) are sloping up and the RSI has been trading in positive territory for the past few days. This suggests that the bulls have the upper hand.
The previous resistance of $176.103 is now likely to act as a strong support. If this level holds, the ETH/USD pair is likely to scale above $189.402, which is just above the 61.8% Fibonacci retracement level of the fall from $251.781-$87.131.
ETH-USD 4-hour chart. Source: Tradingview
Currently, the ETH/USD pair is attempting to bounce off the 20-SMA. If successful, the bulls will again attempt to push the price above $189.402. Traders can buy on a 4-hourly close (UTC time) above $189.402 and keep the stop loss below the 20-SMA.
On the upside, the first target objective is a rally to $208.665. As the price nears the target objective, traders can either book partial profits or trail the stop loss below the 10-EMA. The bullish view will be invalidated if the bears sink the price below the critical support zone of $176-$168.
Tezos (XTZ) rallied on April 18 and scaled above the minor resistance at $2.1819. This is a positive sign as it shows demand at higher levels. The bears are attempting to stall the pullback close to $2.4072688, which is the 61.8% Fibonacci retracement level of the most recent fall.
XTZ-USD daily chart. Source: Tradingview
However, the positive thing is that the bulls have not given up much ground. The previous resistance of $2.1819 is now likely to act as a strong support. Both the moving averages are sloping up and the RSI has been trading in the positive territory for the past few days, which shows that the bulls are in command.
The XTZ/USD pair has repeatedly taken support on the 20-day SMA ($1.92) in the past few days (marked via ellipse on the chart), which shows that the bulls are keen to buy on dips. The short-term uptrend is likely to pick up momentum above $2.40726880.
XTZ-USD 4-hour chart. Source: Tradingview
Currently, the bulls are attempting to provide support at the 20-SMA. If the altcoin bounces off this support and scales above $2.40726880, a rally to $2.55 and above it to $2.70 will be on the cards.
Therefore, traders can buy at $2.41 and trail the stop loss below the 20-SMA. As the price nears the first target, partial profits can be booked and the stops on the rest of the position can be trailed just below the 10-EMA.
If the bears sink the price below the immediate support at $2.1819, it will indicate profit booking and shorting at higher levels.
Chainlink (LINK) scaled above the 61.8% Fibonacci retracement level of $3.5948 on April 18, which is a bullish sign. Usually, when the relief rally climbs above the 61.8% retracement, it is an indication that the downtrend is over.
LINK-USD daily chart. Source: Tradingview
However, the bears are unlikely to give up without a fight. They are currently attempting to sink the LINK/USD pair back below $3.5948. If successful, the pair might dip to the 10-day EMA ($3.36), which is likely to act as a support.
Since March 31, the bears have not been able to sustain the price below the 10-day EMA, which is a positive sign. This shows that the bulls are keen to buy on dips to this level. With both moving averages sloping up and the RSI trading in the positive territory, the advantage is with the bulls.
LINK-USD 4-hour chart. Source: Tradingview
The altcoin has dipped below the breakout level of $3.6412, which shows selling at higher levels. However, the bulls are attempting to defend the critical support at $3.48, which had previously acted as a stiff resistance (marked as ellipse on the chart).
If the pair bounces off this level and breaks above $3.83, a rally to $4.20 and above it to $4.40 is possible.
Traders can initiate long positions above $3.83 with stops placed below the 20-SMA. Partial profits can be booked near the first resistance and the stops on the rest can be trailed to just below the 10-EMA. Traders can either book complete profits at $4.40 or tighten the stops further.
The bullish view will be invalidated if the pair breaks below the $3.48-$3.30 support zone. Below this level, a drop to $3 is possible.
Binance Coin (BNB) broke above the 61.8% Fibonacci retracement but the bears are offering stiff resistance at $16.60, which is the intraday high made on March 12.
BNB-USD daily chart. Source: Tradingview
However, if the BNB/USD pair rebounds off $15.8866 and sustains above $16.60, it is likely to pick up momentum. With both moving averages sloping up and the RSI in the positive territory, the advantage is with the bulls.
Conversely, if the bears sink the pair below $15.8866, a drop to the 10-day EMA ($15.36) and below it to the 20-day SMA ($14.51) is possible. So far the bulls have not allowed the price to slip below the 20-day SMA since March 31. Hence, it is expected that this level will act as a strong support.
BNB-USD 4-hour chart. Source: Tradingview
If the pair rebounds off $15.8866, the bulls will attempt to resume the up move and propel the price above $16.8183. Above this level, the momentum is likely to pick up and a rally to $18.50 will be on the cards.
Traders can buy above $16.85 and keep a stop loss of $15.85. After the price scales above $17.50, the stops can be trailed just below the 10-EMA. If the momentum carries the price above $18.50, a rally to $20 is also possible.
However, if the price dips and sustains below $15.8866, a drop to the trendline is possible. This has previously acted as strong support, hence, a bounce off the trendline can also offer a buying opportunity with the stops kept just below the trendline. A break below the trendline will be a bearish sign and can result in a deeper fall.
Dash (DASH) broke above the overhead resistance of $77.7166, which completed the ascending triangle pattern. However, the bears are aggressively defending $84.2556, which is the intraday high made on April 9.
DASH-USD daily chart. Source: Tradingview
If the bears sink and sustain the DASH/USD pair below $77.7166, a drop to the trendline of the ascending triangle is possible. A break below this level will invalidate the bullish setup.
Conversely, if the pair turns around from the current levels and scales above $84.2556, it is likely to pick up momentum. The moving averages are gradually sloping up and the RSI is in the positive territory, which suggests that bulls have a slight edge.
DASH-USD 4-hour chart. Source: Tradingview
If the pair bounces off the support at $77.7166, the bulls will attempt to propel the price above $84.2556. Traders can buy 50% of the desired position at $82 and the rest at $85. The stops can be kept below the 20-SMA. After the price sustains above $85, a rally to $94 followed by a move to $100 is possible.
On the other hand, if the price dips below $77.7166, a drop to the trendline of the ascending triangle is possible. If the pair bounces off this level, this can also offer a low-risk buying opportunity with the stops placed just below the trendline. The bullish view will be invalidated if the altcoin dips below the trendline.
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.
The market data is provided by the HitBTC exchange.
Author: Rakesh Upadhyay
Focus on digital currencies: How Bitcoin & Co. move on Thursday | 04/16/20
The Bitcoin price was trading at $ 6,985.90 on Thursday. The Bitcoin price climbed above the previous day's level of $ 6,637.68.
The Bitcoin Cash price rose to $ 230.50 after hitting $ 215.29 the previous day.
The Litecoin price soared to $ 42.46. The price had been $ 39.30 the previous day.
The price of the digital currency Ripple is up today at $ 0.1884. The previous day, the price was $ 0.1808.
The Cardano price rose to $ 0.0338 after trading at $ 0.0319 the previous day.
The Monero price was trading at $ 56.02 on Thursday. The Monero price rose above the previous day's level of $ 54.78.
The IOTA course is stronger than the previous day. An IOTA is currently worth $ 0.1584. Yesterday the price was still at $ 0.1486.
Today, the Verge digital currency is up $ 0.0027. The previous day, the price was $ 0.0026.
The rate of the digital currency Stellar rose to $ 0.0487 on Thursday. The previous day, the digital currency exchange rate was valued at $ 0.0465.
The NEM price increases to $ 0.0373. The previous day, it was $ 0.0361.
The dash course has risen. The dash rose to $ 75.20 after trading at $ 71.95 the previous day.
Today the NEO price rose to $ 7.450. This made the NEO rate more expensive than the previous day's level of $ 7.120.
- The lack of Dai liquidity over the past month could see the integration of Chainlink as new collateral in the MakerDAO ecosystem.
- The decentralized oracle token may help increase Dai supply and strengthen its stability.
- The implementation could see demand for LINK increase, subsequently, pushing its price up.
The DeFi news category was brought to you by Ampleforth, our preferred DeFi partner
MakerDAO is getting recommendations to incorporate Chainlink as collateral, which could prove advantageous for LINK’s price.
Over the past month, DAI has been trading between 200 and 300 bps above its peg ratio. The lack of stability poses a significant threat to MakerDAO, potentially pushing DeFi to other decentralized stablecoins, like Terra or Ampleforth. This jeopardizes Dai liquidity across major exchanges.
“Just 10 days ago, we saw CDP 3931 purchase ~5MM DAI, pushing DAI prices to over $1.04. The fact that a top 10 CDP holder was willing to pay 4% above the peg to exit the system is a negative signal,” said ParaFi Capital.
An illiquid Dai could have serious implications for the entire DeFi ecosystem, given that it increases the odds for another mass collateral liquidation. Such an unfortunate event has happened before when borrowers on Maker with open CDPs and Vaults were caught on the wrong side of their collateral requirements.
During the Mar. 12 market carnage, for instance, millions of dollars worth of collateral were auctioned off for $0 while the price of MKR dropped 58% that day alone, creating a major deficit in MakerDAO’s balance sheet.
As result, ParaFi Capital is proposing to on board Chainlink as new collateral given its “market cap, liquidity profile, and appetite for speculation.” LINK could help increase Dai supply and strengthen its stability, according to the alternative investment firm.
Although the Maker community will have the last word regarding the proposed solution, its implementation is expected to have the same success that Aave has had since launch. Since then, roughly $20 million worth of LINK have been supplied to this lending protocol as collateral.
A similar increase in demand for Chainlink upon its introduction to MakerDAO could see its price spike. This scenario aligns with the outlook provided by different on-chain metrics.
The decentralized oracle token has seen its network growth increase by an average of 1,400 new addresses per day over the last week. Meanwhile, the number of addresses going to zero hovers around 1,150.
This is a clear sign that LINK has potential for a further bullish advance, according to Brian Quinlivan, Market and Social Media Director at Santiment.
“[We can] see that a rising network growth leads to a rising price of any project over time, in most cases. On the flip side, declining network growth for a long enough stretch can usually indicate a future slumping price with the lack of newly created addresses constantly in-flowing the coin or token,” explained Quinlivan.
If Chainlink is indeed poised for an upswing, it must first move past the resistance wall that sits between $3.6 and $3.8. IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model estimates, which shows nearly 5,500 addresses bought over 11 million LINK around this price level.
Breaking though this supply barrier could see this crypto surge to the next major resistance level that sits around $4.
Nonetheless, if the bears step in they may find strong support ahead. The IOMAP reveals that 9,600 addresses bought more than 45 million LINK between $3.2 and $3.5. This demand area could prevent Chainlink from a steeper decline.
Since Black Thursday, Chainlink has been able to recover sharply, with its price increasing over 150%. While on-chain metrics reveal that demand for the oracle network is increasing, the utility of this token has proven to be key for the success of many crypto firms.
Celsius Network, for example, recently announced the integration of Chainlink to fence in decentralized price feeds while bZx used it to kill their dependence on a single oracle provider.
Now, ParaFi Capital is proposing to utilize LINK as new collateral for the MakerDAO ecosystem. This implementation could increase the demand for this altcoin, subsequently, pushing its price further up.
Disclosure: Ampleforth is a sponsor of Crypto Briefing.
The DeFi news category was brought to you by Ampleforth, our preferred DeFi partner
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Author: by Ali Martinez
Why Bitcoin Yields Are Looking Up vs Other Assets, Especially Cash
“Cash is trash” has a nice rhyme to it, and in some inflation-ravaged paper-based economies it’s literally true. But as an investment mantra, it bears some scrutiny, especially in light of what it says about bitcoin.
When a multi-asset manager such as Ray Dalio uses that phrase, as he did in Davos earlier this year, we can assume he means that cash is not as attractive for portfolios as other assets. He expanded further on this in a question-and-answer session on Reddit earlier this month, pointing out its “costly negative return.”
This warrants further clarification, as the actual yield on cash is a complex subject. The cash under your mattress does not earn any interest and has a theoretical storage cost. (Even if there’s no direct outlay, there’s the cost of a lack of solid rest due to bumpy sleep surfaces.) And there’s the opportunity cost – just think of all the potential returns you’re forgoing by not investing in stocks or bonds (oh wait…).
The cash in your bank account is also unlikely to produce meaningful income. And we now have the very real possibility that banks will start to apply negative rates to cash holdings, as part of a mandated strategy to stimulate spending.
(Note that I’m not saying I agree with this rationale, just that it’s often trotted out. There’s an opportunity cost to not having cash around, as well. And many renowned investors are flush with cash, preferring to have “dry powder” for when opportunities arise.)
A bigger-picture way to look at cash returns is the real yield, which incorporates inflation. We are already seeing a dip in inflation as spending plummets due to lockdowns, but once economies re-open and the stimulus checks are used to purchase everyday items made relatively scarce by supply chain constraints, inflation is likely to edge or even surge upwards.
This will push real yields on cash well into negative territory. Then, cash will indeed be “trash.” But at least its negative territory will be stable.
Let’s look at the yield outlook for government bonds. Even before the Fed abruptly cut its benchmark rate to 0% last month, U.S. bond yields were heading down across all maturities. Other government debt either carries a negative return or default and currency risk.
Corporate bonds offer higher yields, but a wave of defaults is more likely now than at any time in recent history. They don’t call it a risk premium for nothing.
Stock yields, which have recently been even higher than bonds, are likely to head sharply down as dividends are cut across the board.
Two assets that aren’t looking at lower yields? Gold and bitcoin.
Both are “real assets” in that they don’t have any income. Which means that there’s no income to cut. Their value may go down as well as up, but it will do so because of consensus market forces, not political interference or centralized decisions.
This adds a new nuance to the use of the word “real.” Both gold and bitcoin can be influenced by political priorities and economic measures, but their intrinsic value cannot. And both gold and bitcoin are relatively liquid instruments with sophisticated derivatives markets.
True, both are held in multi-asset portfolios valued in fiat currencies, and both largely depend on fiat currencies for their utility, for now. But of the two, only bitcoin can operate efficiently outside the fiat rails. Only bitcoin can be exchanged for other assets without going through a fiat conversion.
For now, this feature is limited to crypto exchanges that let you buy other crypto assets with bitcoin. It’s a start, and as traditional and crypto capital markets gingerly approach each other, it’s likely to spread.
Admittedly, that will take time, but meanwhile, the point is this: unlike cash and securities, bitcoin is not vulnerable to centralized decisions on asset yields; and it can be used in a way similar to cash in asset purchases. It is the only quasi-cash equivalent that is resilient to the likely politicization of finance that results from the current ructions in markets and the broader economy.
Cash may be dissed by some who believe that yields should be a fundamental investment consideration; but everything in the investment world is relative. We could see attention start to coalesce around a potential alternative – not to cash itself, but to the role it plays in asset allocations. Bitcoin is by no means a cash substitute, at least not yet. It will, however, become an increasingly intriguing alternative for some of cash’s applications.
Markets were all over the place this week, with bitcoin dropping 8 percent between Monday and Thursday, only to rebound by almost 9 percent by Friday.
The S&P 500 was also volatile, clocking in a second weekly gain in a row for the first time since February, in spite of yet another staggering jump in unemployment claims, the worst retail sales data since 1992, the worst New York state manufacturing data since WWII and a relentless climb in COVID casualties. Maybe expectations are just so bad that the actual news comes as a relief? Or maybe reality doesn’t matter anymore. I don’t know.
Not to be left out, gold is also doing weird things, with the spread between the spot and futures price widening to its highest level in 40 years. The spot price reached its highest point in seven years, which is confusing given the strong performance of the main equity index. I really need to dig deeper into what the problem is, if any, with physical delivery.
It was an intense week for significant (albeit unsurprising) developments in global stablecoins. The Facebook-backed Libra project has pivoted from a multi-currency-backed global token to a wallet and blockchain for single currency stablecoins as well as a multi-currency stablecoin-backed stablecoin (not a typo).
The idea of a “digital dollar” to facilitate stimulus payments has been reintroduced in the latest stimulus bill.
And my colleagues Wolfie Zhao and David Pan went deep into the Chinese national blockchain platform with global ambitions that could significantly impact the digital currency plans of central banks around the world.
Our chief content officer, Michael Casey, has launched a newsletter focused on the impact of these and other developments on our financial system. It’s called “Money Reimagined,” and it comes out on Fridays – you can subscribe here, and read the latest issue here.
(Nothing in this newsletter should be considered investment advice. The author holds a small amount of bitcoin and ether.)
Renaissance Technologies’ flagship Medallion fund is considering adding cash-settled bitcoin futures to its holdings, according to a recent filing. TAKEAWAY: On the surface this may seem like a big deal: one of the world’s largest and best-known hedge funds (the Medallion fund has nearly $10 billion AUM and is up 24 percent so far this year) believes bitcoin is worthy of investment. But, digging a bit deeper, it’s not that at all. Renaissance is a quant firm, which means that it does not pay attention to underlying stories. It cares about correlations. Bitcoin exposure does not mean the managers see bitcoin as a revolutionary idea worth betting on; it’s a number. Still, we should keep an eye on bitcoin futures volumes on the CME.
Silicon Valley venture firm Andreessen Horowitz is aiming to raise $450 million for a second cryptocurrency fund, according to the Financial Times. Its first crypto fund raised $350 million in 2018. TAKEAWAY: This is a pretty sizeable vote of confidence in the sector’s potential, and not just through venture support for promising crypto-related companies. The investment may end up having an impact on the market itself – last year the firm registered all employees as financial advisers, enabling the fund to invest directly in crypto assets.
(You also might want to check out their explanation of how crypto business models are different from web business models. TL;DR: It’s not just the network effect that gives value, it’s also the ability to reward participation and redistribute economic value to participants in the network, creating a virtuous circle of increasing participation and value.)
Researchers at the Kansas City Federal Reserve published a paper about bitcoin’s correlation with bonds and equities, with some unexpected results. TAKEAWAY: This study is particularly interesting in that it differs from studies that look at overall correlations over time. This one isolates times of financial stress, when you arguably most need a safe haven, and it finds that, during these times, bitcoin acts more like a risk asset and has positive (yes, positive) correlations with the S&P 500.
Marcel Burger gives us a good overview of the evolution and current state of the crypto derivatives market, and explains why settling in BTC while quoting in USD turns the P&L from linear to non-linear. TAKEAWAY: Yet another peculiarity of trading in the crypto market. Outside of the FX markets, most traders won’t be used to this risk shift. This could be one of the reasons that BitMEX’s liquidation engine gets so much exercise. (For more detail, see also our “Crypto Derivatives” report.)
TradeStation is now offering crypto trading via an agreement with institutional-grade crypto exchange ErisX. TAKEAWAY: This in itself isn’t really news – TradeStation has been offering crypto trading for almost a year now, through its subsidiary TradeStation Crypto. What is surprising is that the legacy financial firm (founded in 1982) is continuing to invest in crypto market infrastructure, even after the disruptions of March. Just being offered on TradeStation is not enough to boost investor interest in crypto assets – many investors will still be wary of the volatility and relative lack of liquidity. But the additional exposure, getting in front of its sizable client base, won’t hurt. The platform is even promoting crypto asset trading on its home page.
According to analytics firm Glassnode, the amount of bitcoin held on exchanges is at its lowest level since June 2019. TAKEAWAY: This could imply that investors are moving their holdings off-exchange into custody, a sign that selling pressure might be easing up. In theory, you hold your bitcoins on an exchange if you are likely to want to trade them. If you’re planning on holding them for a while, you’ll probably move them to a safer storage.
Greenidge Generation, an Upstate New York power plant using proprietary facilities to mine bitcoin, has sold up to 30 percent of its computing power to institutional buyers. TAKEAWAY: This came out last week after I had finished the newsletter, but is worth flagging anyway since I am convinced we will see more traditional companies adapting their current installations to generate additional income through cryptocurrency mining. Keep an eye on other electricity generators and also on the oil and gas industry, where a lot of energy currently goes to waste and could be monetized through mining rigs. This would be very good news for the sector, as it would further decentralize the infrastructure and embed cryptocurrency in more mainstream business settings.
Shares of cryptocurrency mining firm Hut 8 Mining Corp. (HUT) rose 32 percent on the Toronto Stock Exchange on Friday, on volume nearly eight times the daily average. TAKEAWAY: I don’t know what’s going on, but for perspective, the shares are now back to where they were a month ago. The few listed shares with strong crypto exposure are worth keeping a close eye on not just as investment opportunities but also for what they teach us about sector economics. Mining companies are vulnerable to a sharp drop in revenue post-halving, but also stand to benefit from price upside.
Leah Callon-Butler describes how COVID highlights a potential crypto-shaped lifeline for citizens of the Philippines, and how traditional finance organizations are getting involved. TAKEAWAY: For much of the world, the potential of bitcoin is not as an investment asset – it’s as a payment method. This duality should produce some intriguing growth patterns over the coming years as both narratives move forward.
After the spike resulting from the mid-March crash, the volatility of the S&P 500 has stayed high, while that of bitcoin has fallen. TAKEAWAY: This is true of the 30-day volatility, but even so, bitcoin’s volatility is still higher than that of the S&P; and longer-term, the difference is even more apparent.
Open interest in bitcoin futures on the CME have rebounded since the March crash. TAKEAWAY: The levels are still low, and are not yet accompanied by noticeably higher trading volumes. They do, however, indicate a gentle recovery of investor confidence that the sharp volatility of mid-March is unlikely to return in the short term.
Google searches for “Bitcoin halving” are shooting up. TAKEAWAY: Not a surprise, but it is indicative of an uptick in mainstream interest in bitcoin, and since we’re still a few weeks away, is likely to trend much higher (going by what happened in the last halving in 2016).
Author: William Foxley
Altcoin News | Altcoin News Today | Altcoin News and Rumors | 247
Reading the altcoin news today is not as easy as it sounds. Getting reliable sources of informative news about altcoin is becoming a hassle. One of the reasons for this problem is the huge number of websites cropping up and marketing themselves as reliable sources of the best altcoin news today. Unfortunately, the majority of these sites are out to make returns from readers’ interest through internet marketing. Therefore, the question remains: where can a reader get unbiased approach on the latest altcoin news and rumors?
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