Bitcoin Price Struggling to Break $7K — Here’s the Worst-Case Scenario

Bitcoin Price Struggling to Break $7K — Here’s the Worst-Case Scenario

Bitcoin price is showing promising signs but BTC is still in a downward trend until this key level breaks

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The price of Bitcoin (BTC) has seen a relatively stable week, as BTC/USD has been hovering between $6,000 and $7,300.

However, due to the low volatility, the volume also diminished, which is a sign of a big move in the works. What can be expected of the markets while the coronavirus pandemic is taking a toll on the global economy?

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

Bitcoin hovering against crucial resistance for bullish momentum

The price of Bitcoin is hovering against the crucial resistance for bullish momentum. A clean break above the resistance of $6,900-7,100 would indicate bullish momentum, which opens the door to $8K.

BTC USD 1-day chart. Source: TradingView

BTC USD 1-day chart. Source: TradingView

The reasoning behind this thought is quite clear. Bitcoin has seen a massive retracement in the past few weeks, after which the price slowly started to move up, as it’s up almost 100% since the recent low of $3,750.

However, no level has been claimed for support again, which is a crucial ingredient in becoming bullish. The price of Bitcoin needs to claim old support levels to flip levels from resistance to support and to generate a further optimistic outlook for the market.

Price of Bitcoin also fighting 100-Week MA

BLX 1-week chart. Source: TradingView

BLX 1-week chart. Source: TradingView

The higher time frame charts are the charts to watch at this point, as they provide massive support and resistance levels.

The weekly chart is one of those charts, as the 100, 200 and 300-moving averages show significant support and resistance levels.

Currently, the price of Bitcoin bounced from the 300-Week MA, closed above the 200-Week MA, and rejected at the 100-Week MA. The latter, the 100-Week MA, is a crucial factor to watch for if the market wants to turn bull.

An apparent breakthrough of the $6,900 level (as that’s the level around the 100-Week MA) would mean that the market regains this moving average as support. A conclusion can be drawn that a bull market has started if that moving average can become support.

However, losing the 200-Week MA (which is around $5,400), would generally lead to a further drop to the $4,000 area, which is around the 300-Week MA. Such a drop would inevitably result in a period of accumulation as witnessed in previous cycles.

An accumulation and sideways period wouldn’t be strange in the current economic climate surrounding the coronavirus. However, if Bitcoin can reclaim the 100-Week MA and turn bullish, then that would be a major bull market signal.

Total market capitalization also fighting crucial resistance

Total market capitalization cryptocurrency 1-week chart. Source: TradingView

Total market capitalization cryptocurrency 1-week chart. Source: TradingView

The total market capitalization of cryptocurrencies is showing a clear view. A break and a close above the $185-190 billion resistance level would suggest a bull market and put the $240 and $300 billion resistance levels in sight.

However, if the market goes into the red next week, a further downwards test could also occur in the total market capitalization chart.

The levels to watch for are the $130 and $105-115 billion regions. As discussed previously in the article, the 300-Week MA could serve as major support.

This moving average is lying around $117 billion as we speak, confluent with the support levels lying beneath the markets. If the market decides to fall further, this level is the primary area to look for.

The bullish scenario for Bitcoin

BTC USD 6-hour bullish chart. Source: TradingView

BTC USD 6-hour bullish chart. Source: TradingView

The bullish scenario for Bitcoin is now pretty straightforward. The chart is showing a clear downwards pointing trendline, which needs to be broken to the upside for a bullish outlook.

Therefore, Bitcoin has to remain above $6,300-6,400 for support as the first step, after which the next massive step would be to generate a breakout to the upside.

The moment that Bitcoin decides to break through the $6,900-7,100 resistance level, a green $700-1,000 candle may be expected, as it’s pretty much open-air until the major next resistance level at $7,800-8,000.

The final step for a massively bullish outlook would be to flip the $6,900-7,100 for support. If that happens, further upwards momentum can be expected with targets at $8,500, $9,300 and $10,400 after that.

For now, a breakout above the current resistance level would be a great signal.

The bearish scenario for Bitcoin

BTC USD 6-hour bearish chart. Source: TradingView

BTC USD 6-hour bearish chart. Source: TradingView

The bearish outlook is still likely given the current economic instabilities and Bitcoin price trend, which can be said is in a rising wedge within a general downtrend.

Given that the volume is decreasing in the recent movements, a big move is to be expected from the markets. Combining everything alongside the resistances, a downwards move is the most likely to occur.

Therefore, if the price of Bitcoin can’t break above $6,900-7,100 (red zone), a drop towards $5,600-5,800 is to be expected. The movements to watch for traders then are the support/resistance flips in continuation.

If the price of Bitcoin drops to $5,600 and the bounce gets rejected instantly at $6,300, then further downward momentum should be expected.

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.


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Bitcoin price is showing promising signs but BTC is still in a downward trend until this key level breaks

2 Chinese OTC Traders Accused of Illicitly Raising Bitcoin by Promising Interest

2 Chinese OTC Traders Accused of Illicitly Raising Bitcoin by Promising Interest

Two Chinese over-the-counter crypto trading chat groups administrators have been accused of illicitly collecting bitcoin for running a loan scheme

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Two Chinese over-the-counter (OTC) traders have been accused of running an illicit bitcoin (BTC) loan scheme and collecting bitcoin by promising interest on deposits, Chinese newspaper The Beijing News reports on May 22.

According to the article, Yi Zhou and Xiang Li convinced traders to send them their bitcoin holdings by promising them interest on their deposits, obtaining over 7,000 BTC (nearly $54.7 million at press time) from over 100 investors. The allegedly defrauded investors first started cultivating suspicions when the interest — which was paid in yen — stopped arriving on time in April.

The two individuals reportedly gained investors’ trust by operating chat groups on popular Chinese messaging app WeChat, where traders posted OTC offers for various cryptocurrencies. The outlet claims that police have started a criminal investigation against the duo and that they are now under arrest. It is reportedly currently unclear whether the two ran an unauthorized loan scheme or just defrauded the investors of their assets.

As Cointelegraph reported earlier this month, WeChat banned cryptocurrency transactions in its payments policy.

Yesterday, the CEO of Digital Currency Group suggested that the recent rise in bitcoin’s price could be linked to the trade war between China and the United States.


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Two Chinese over-the-counter crypto trading chat groups administrators have been accused of illicitly collecting bitcoin for running a loan scheme

A Blockchain Ranking Machine to Select Promising Science-Focused Venture Projects

A Blockchain Ranking Machine to Select Promising Science-Focused Venture Projects

Decentralized Ranking Machine promises to fund complex science ventures #SPONSORED

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For every Da Vinci funded by the Borgias and Edison patronized by Ford, there are tens, if not hundreds of inventors and genius scientists, whose innovations have never been noticed. In many cases, it was the inability to attract investors that buried promising technologies.

A startup called ScientificCoin, based in California, aims to have a solution for this centuries-old problem.

Nerds to the rescue

The company has developed an algorithm for a bias-free, decentralized evaluation of projects so that investors can fund venture projects in science and other areas including initial coin offerings (ICOs) with more confidence. Vladimir Kozhevnikov, the Chief Financial Officer of ScientificCoin, said:

“We are leveraging blockchain technology to take out the human error factor and to make the rating process more fair and transparent. We want to help investors to pick the right projects and we have the ambition to help the world by bringing as many valuable innovations as possible to the market.”

In other words, the bunch behind this nerdy name, have come up with nothing less than a project ranking machine, coupled with an algorithm that can distinguish an informed and knowledgeable opinion from the rest.

The result is a crowdfunding platform with a promise to finally do everything right.

The business model is simple: for investors, there’s the promise of peace of mind and more insurance against scams. For recipients, if they are able to defend their projects against the steel-cold logic of the machine, there is the promise of funding to implement their ideas. For ScientificCoin tokenholders, five percent of of all funds raised using this platform is distributed between tokenholders of its respective coin, as a fee.

It is a coin, and it is scientific

ScientificCoin’s Chief Executive Officer Maxim Dvedenidov says its ranking algorithm is based on the same mathematical principles that venture funds, insurance companies, and stock exchanges use to evaluate investment candidates. Dvedenidov says to Cointelegraph:

“The ranking machine takes into account more than 70 major characteristics divided into five sections. The rating is determined in accordance with the correlational regression model based on statistical analysis of the projects over a nine-month period”.

When applying for a ranking, those seeking financing are to fill out a form with “precise questions and indicators” of their product. The program models the rating of the project by the correlation of its characteristics, and then a ranking in with allocation of a rating for each characteristic of a project.

Challenging the oligopoly

The ScientificCoin team sees the centralization of authority to evaluate new projects in hands of a few pundits as a root of all evils that plague the industry. These experts, while knowledgeable, are prone to corruption, bias and influence, ScientificCoin argues.

The company offers a decentralized alternative, a kind of “crowd evaluation” as a remedy. The company’s leader elaborated:

“The algorithm we have created will not allow [experts] to take the project appraisal frivolously. The influence of an expert’s vote on the rating of a particular project will depend on a lot of factors, including the expert’s evaluation history, their personal details, and the level of uniqueness of the project”.

According to him, any particular experts may not be aware of some faults of a reviewed project, but the hive mind will not miss a thing.

While promising, the idea behind ScientificCoin will almost certainly provoke another arms race. An algorithm that decides who gets a resource (funding in this case, or customers’ attention in case of search engines), inevitably sees itself a target of much criminal attention. We all saw an entire industry of fooling search engines emerge. Does the same fate expect project ranking algorithms like ScientificCoin?

ScientificCoin says it is prepared for such a scenario. A complex set of statistical algorithms detects and rejects “opinions” with vested interests, based on a plethora of factors nearly impossible to circumvent, ScientificCoin explains.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.


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Decentralized Ranking Machine promises to fund complex science ventures #SPONSORED