Crypto Brief Jan.11: The bear market fractal shows $ 3,000 is not Bitcoin real bottom plus ETH, LTC, TRX, DAG, XTZ, BCH, BSV, XMR, LINK
From the potential of Bitcoin’s new bottom to Kik continues the legal battle with the SEC. These are some of the prominent news in the crypto space.
According to a comparison between the current bear market and the 2014-2015 bear market, Bitcoin clearly followed a similar trajectory, albeit in a different period. If BTC continues to follow the same path, $ 3,000 is not a real bottom, and a new low could be in the coming months.
Has Bitcoin really hit its bottom, or will we see the repetition of the 2014-2015 bear market?
Bitcoin is only eleven years old, and it has a minimal history to draw potential comparisons. The idea is that the cyclical market, history repeats, and emotions are similar, so both protests and even corrections can sometimes have similar shapes.
But with Bitcoin, it only had a few drawdown stages, often quickly reversing and the subsequent recovery more than offset the previous losses.
Because there are too few comparisons to compare, the best comparison with the current bear market is the 2014 to 2015 bear market. The bear market formed after Bitcoin peaked at the end of 2013 at more than $ 1,000, then dropped to around $ 150 at a low level.
However, before Bitcoin slipped back to $ 150, it had a short-term rally from around $ 350 to $ 665.
I don’t insist.
Moreover, I think it is very unlikely to happen.
But don’t deny that there is a resemblance.
Even the time scale is expanded, just as it is expected for the increased capitalization. $BTC $BTCUSD #bitcoin pic.twitter.com/r1FqoQ1zLQ
— CryptoHamster (@CryptoHamsterIO) January 10, 2020
Investors think their calamity is over, and the assets have bottomed out completely unexpectedly as the cryptocurrency gets deeper and deeper, causing extreme panic and fear.
When comparing the same pattern and similar behavior with Bitcoin’s current bear market, with a slightly adjusted length, the price action is following the same trajectory after the rally culminates and begins towards the real bottom, where Bitcoin jumps into the new bull market.
Bitcoin outperformed all other assets on the planet in the first ten years of existence. In second place is Ethereum.
If Bitcoin was an investment of the 2010s, Ethereum could be an investment of the 2020s if the price continues to improve compared to Bitcoin’s early performance.
CryptoWolf analyst pointed out the similarities between the price performance of the two assets in the early years. He presented a chart showing the same explosive growth of both assets.
This chart must not be ignored. pic.twitter.com/tjzEo6VFwT
— CryptoWolf (@IamCryptoWolf) January 10, 2020
The line representing ETH price action so far closely resembles Bitcoin in shape. However, there is a big difference. The ETH price experienced a much stronger increase than Bitcoin did between 2010 and mid-2012.
The first major Bitcoin bull market peaked in the summer of 2011. If the earliest investors sold at this peak, they would realize the return on investment from 100 times to 1,000 times. While undoubtedly impressive, those involved in the Ethereum market from the beginning and cashing out at the peak of the first bull run in 2017 would have invested about 3,000 times. Following this logic, Crypto Wolf makes the bold claim that “the investment of this decade will be Ethereum.”
Ethereum’s chronic congestion caused by worldwide adoption
The second-largest cryptocurrency platform had a significant congestion problem for a long time. Occasionally, Ethereum developers do something to ease this problem; however, on a large scale, it has not yet been addressed.
Weiss Ratings tracks the status of the cryptocurrency industry, stating that Ethereum has succeeded in making the crypto community’s dream come true (to a certain extent).
As a cradle for many cryptocurrency platforms, including Tron, EOS, and Binance, it has spread the ‘Gospel of Crypto’ around the world. As a result, the Ethereum network is overloaded.
Weiss Ratings said that if the Ethereum team did not find a way out of this situation, Ethereum customers would find alternatives to the brainchild of Vitalik Buterin.
The agency believes that Ethereum 2.0, which is planned to be implemented soon, could save the situation for the network.
Chronic congestion on the #Ethereum network shows worldwide adoption, most important factor in long-term success of any crypto. However, if nothing changes, #ETH users will start looking for alternatives. That’s why ETH 2.0 is necessary for Ethereum to move forward.#crypto
— Weiss Crypto Ratings (@WeissCrypto) January 10, 2020
DeFi delivered 250% ROI over 2019
Decentralized finance (DeFi) is growing from strength to strength despite a one-year general discount for most crypto assets. A small investment in DeFi could yield more ROI than bitcoin in the past year.
Since the beginning of the year, the total dollar value locked in DeFi has increased by nearly 200%, according to defipulse.com. It is currently at around $ 660 million after reaching an all-time high of $ 710 million on Wednesday.
Ethereum still dominates with new records continually being broken. Currently, the amount of ETH locked in DeFi is at an all-time high of 3.1 million. This is equivalent to about 2.85% of the total supply.
Research firm Messari made some calculations and concluded that a $ 400 investment in the four major DeFi areas in early 2019 would yield a profit of $ 1,400, or about 250%.
How would your portfolio look if you invested $100 in four major DeFi sectors at the start of the year?
Well, your $400 would be worth almost $1,400 pic.twitter.com/qFB58tIWoU
— Jack Purdy (@jpurd17) January 9, 2020
The Plasma team stopped studying Ethereum scalability
Plasma Group has announced that they will stop studying Ethereum scalability.
Identifying funding for public goods as the next significant challenge, they pledged to donate their remaining money to Gitcoin.
Plasma Group was founded in January 2019 to promote research towards Ethereum scalable solutions based on Plasma technology. It has received funding from various organizations, including the Ethereum Foundation, ConsenSys, OmiseGo, Matic Network, and Gitcoin.
BCH and BSV News
The cryptocurrency market recovered a crazy rebound on Friday. Bitcoin, Ethereum, XRP, and all the other altcoins have risen higher, rising to the price never seen since the previous days.
While this is very noticeable, a strange trend has been discovered: all Bitcoin forks, from Bitcoin Cash and Bitcoin SV variants more confusing than Bitcoin Diamond, have seen the price skyrocket.
BSV increased by 40%, while BCH, the largest fork of the original Bitcoin chain, recorded a 14% increase.
While this spike has convinced many investors about the altcoin price hike, but there is one major reason why Bitcoin Cash and other fork price protests may not exist in the medium term.
The forks jumped higher after news that Dr. Craig S. Wright, who claimed to be the creator of Bitcoin, sent documents in a court case showing that he has control of 1/3 of the Tulip Trust, which can hold a massive amount of BTC, potentially worth billions of dollars in cryptocurrency.
New: Craig Wright just so happened to have a third “Tulip Trust” set up to hold that missing $10 billion fund.
He sent the info about the “Tulip Trust III” in a document dump of 428 dossiers.
Can someone involves in this mess pls send me $1 million to keep going? pic.twitter.com/zAcI9Wohn9
— Brendan Jay Sullivan (@MrBrendanJay) January 9, 2020
The idea is that if Wright had the money and took control of it, he would dump BTC on the market while pushing the price of the fork higher. This is more realistic than speculation because fake satoshi has repeatedly stated that he intends to bring down the Bitcoin market to his benefit.
The world of cryptocurrencies is often referred to in the context of future development. However, altcoin mining has not been noticed. Unlike Bitcoin mining, altcoin mining is considered to be more complicated. Therefore, it is still at a relatively new stage.
Currently, there are more than 400 minable coins in the market, according to CoinMarketCap. Bitcoin miners are already using ASIC chips, while smaller altcoins are still using GPUs.
Grin has 13 mining pools with the top 2 pool contributing over 50% of the total hashrate while using ASIC and GPU. The hash rate for Grin mining is mostly concentrated in Asia-Pacific, along with Europe and North America. On the other hand, Monero and Ethereum have 43 and 71 mining pools, with the hash rate mainly concentrated in Europe.
In a recent tweet, Justin Sun shared that DLive is used by the world-famous streamer PewDiePie. He has 102 million registered users on YouTube and more than 65,000 followers on Twitter.
In a shared section, Sun showed PewDiePie talking about BitTorrent and the Tron chain, and it seemed like an explicit ad.
Today, I wanna introduce @pewdiepie, the No.1 YouTube in the world, he’s chosed to livestream his content on Dlive, a product from #TRON ecosystem. He made a funny video to explain his thoughts on why he choose #Dlive. Check it out? https://t.co/V9nqK8TNcA
— Justin Sun (@justinsuntron) January 10, 2020
DAG price has reached a significant support area that could mark the end of the correction starting on December 17.
DAG spent most of the 2019 trading below 70 satoshis without significant fluctuations. The price broke out across the region in September 2019 and increased its growth rate until December, when it reached a high of 388 satoshis.
The most significant resistance areas are found at 300 and 185 satoshis, while the strongest support areas are 135 and 70 satoshis.
Source: Trading View
Since October 2018, the Tezos price has been trading in the range of 9,000 to 26,000 satoshi. Both support and resistance areas have been confirmed three times.
On December 17, 2019, the price reached a peak of 25,520 satoshis, only slightly lower than the 2019 high of 26,600 satoshi in April and had declined since then. Continuing to move down to this level to the next support will constitute a 45% decline from the current price.
The December 17 high and the next movement have some similarities with its movement throughout March and April 2019. Both see RSI values near 70 – quite close to being considered overbought. Shortly thereafter, the price began to slide down.
The ten and 20-week moving averages (MA) have made a 91-day price drop after reaching this RSI, which coincides with the bottom of the above move. If the same pattern repeats, the price will gain support on March 9, combining this low with a bearish cross of the MA, as mentioned above.
Source: Trading View
Litecoin seems to be leading the recent growth in the cryptocurrency market. Based on historical data, the last time LTC acted this way marked the beginning of a full rally.
Analyst Willy Woo has stated that Litecoin’s price action could be used as a confirmation of where Bitcoin is heading. From a low time frame, the analyst determined that LTC is leading the price of BTC.
Low time frame. LTC has been leading BTC.
LTC already has broken the next resistance. pic.twitter.com/WQJ9JwLFNl
— Willy Woo (@woonomic) January 10, 2020
Launched Wednesday on the main Ethereum network, the collateral-free lending platform Aave Protocol provides support for 16 digital assets and has now integrated Chainlink.
Aave offers flash loans, in which money can be borrowed immediately without requiring collateral. The process takes place in a single transaction, and there is a condition: the liquidity is returned to the group before the transaction ends.
Samsung SDS launches Blockchain-based Mobile Payment System
According to the report, Samsung SDS and Syniverse have entered into an agreement to develop a blockchain-based platform for mobile payments.
What a day at #CES2020! @Syniverse and @SamsungSDS leaders met to announce a partnership on a #blockchain platform that will simplify and standardize #mobilepayment. We can’t wait to get started! https://t.co/Ku7ocCpWvY pic.twitter.com/ujYLyjF77m
— Syniverse (@Syniverse) January 10, 2020
The aim is to facilitate frictionless transactions between carriers and mobile businesses in various sectors of the global economy, including finance, logistics, tourism, and hospitality, etc.
The team says a common platform will be built to be compatible with any mobile operator, and users can send money, loyalty points, or cryptocurrencies to other users or merchants worldwide.
Kik continues the legal battle with the SEC
Kik Interactive Inc. has requested an official definition of the hearing date for its case with the US Securities and Exchange Commission (SEC). The company was charged by the SEC in June 2019 for issuing unregistered securities for $ 100 million in ICOs.
Kik launched a successful ICO in 2017, issuing the Kin token. Although it is presented as a utility token to access some of Kik messenger’s features, the SEC has been monitoring it since early 2019.
Legal pressure caused Kik to significantly reduce operations in September 2019 to focus on the legal battle.
Kik remained challenged in the face of overwhelming, overwhelming odds, arguing that the SEC did not have strong evidence to support their claim. CEO Ted Livingstone expressed his desire to go to trial as soon as possible, setting the goal of May 2020.
However, new documents show that this goal may not be achieved. In response to a court order of November 26, the two sides agreed on a roadmap to prepare for the trial expected to be completed by June 2020.
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