Crypto Roundup: September 29th, 2020

Bitcoin is once again approaching $11K, after swiftly recovering from a drop alongside stocks and gold early last week.

The leading cryptocurrency fell to $10K before bouncing amidst bullish headlines, including news that British overseas territory Bermuda had approved a Bitcoin ETF. Although not on U.S. soil, the event has created a stir among traders, who have long anticipated that a Bitcoin ETF listing could trigger a meteoric rise like the one that followed the first Gold ETF in 2003.

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Ahead of Bitcoin, little brother Ethereum recovered even faster from the fall. The second-largest cryptocurrency has pushed up almost 3% over the last seven days as it races to catch up with the week’s biggest winners — Cardano and Tezos.

This Week’s Highlights

  • Cardano Climbs Above $0.10
  • Tezos Rides Tokenized Art Trend

Cardano Climbs Above $0.10

A surprise ask-me-anything session with Cardano founder Charles Hoskinson catalyzed a 20% surge for the platform’s native token, ADA, last week. In the session, Hoskinson shared details of the upcoming network upgrade, Goguen. This represents a big step forward as it will allow developers to build decentralized applications (dApps) on Cardano.

Bullish Cardano sentiment has been bolstered further by news that IHOK, the company behind the platform, is working with the United Nations to incentivize the development of blockchain projects aimed at boosting sustainability.

Tezos Rides Tokenized Art Trend

Self-governing smart contract platform Tezos has risen almost 7% over the last week.

As one of the leading tokenization platforms, the rally could be related to rising interest in non-fungible tokens (NFTs). These on-chain crypto-collectibles and unique art pieces have garnered increased attention in recent weeks amidst the DeFi boom.

Aside from hosting digital artwork, Tezos could also be helping small Chinese businesses to build and deploy blockchain apps. China’s government-backed blockchain infrastructure initiative, the Blockchain Service Network, announced this week that it has now fully integrated Tezos.

The Week Ahead

Although September has been a relatively quiet month, some suggest this is a bullish sign, with data from Messari showing that Bitcoin has never before managed to stay above five figures for so long.

This buoyancy is particularly impressive given the recent KuCoin hack, which could continue to impact crypto markets in the coming week as hackers seek to offload more than $150M in stolen funds.

As we move into October, the impending U.S. election is likely to dictate price action across global markets, along with fears of a second wave of coronavirus cases. This could come to a head on Friday when the latest jobs report will give fresh insight into the state of the economy.

Image by Gerd Altmann from Pixabay

93% of the top 250 coins declined in price in September

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A “Flash Crash” Scenario Looms Over Bitcoin; Here’s Why

A "Flash Crash" Scenario Looms Over Bitcoin; Here's Why

Bitcoin

A “Flash Crash” Scenario Looms Over Bitcoin; Here’s Why


Bitcoin may undergo a significant price correction before the US presidential election due to its proximity to gold, hints Clem Chambers.

The CEO of ADVFN – Europe’s leading stocks and shares website, told Kitco News that most assets that have shown a positive correlation during the 2020 bull run tend to fall in tandem. He spoke about gold and how a “flash crash” in its markets could leave other assets in a similar bearish spell.

“I got a warning from the market about ten days ago…so I cleared the decks because I think it’s highly likely, not absolutely certain, but too likely to be in the markets that we’re going to be in for a crash,” Mr. Chambers said. “Normally before a crash, I experience what I call a market malfunction where my portfolio just doesn’t behave as it should.”

The Tale of Two Safe-Haven Assets

Bitcoin laggingly tailed gold, especially since the March 2020 global market rout wherein both the assets crashed in tandem. At one point this year, the short-term correlation between the cryptocurrency and the precious metal reached an all-time high of 75 percent.

The proximity grew mainly because of a growing demand for safe-haven and riskier assets amid a bearish US dollar outlook. The Federal Reserve’s unprecedented monetary policy, which includes an open-ended bond-buying program and near-zero interest rates, lifted the appeal of cash and cash-based instruments, such as US government bonds.

Anticipating short-term low yields, investors decided to offload their dollar positions for gold, Bitcoin, US stocks, and other assets.

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Bitcoin is down 13% from its year-to-date high near $12,500. Source: TradingView.com

Nevertheless, the Fed warned last week that it could not continue its expansionary program without further monetary help from the US Congress. Its chair Jerome Powell requested the House to release the second coronavirus stimulus package. It is the aid that remains in a deadlock as the Democrats and the Republicans debate over its size.

Economists believe that the Congress will not be able to pass the stimulus bill before the November’s presidential election. With expectations of lesser dollar liquidity in the market, the demand for the greenback has increased among investors. On the other hand, gold, stocks, and Bitcoin have started correcting lower from their local highs.

That is where Mr. Chambers sees a “malfunction.”

Conflicting Bitcoin Opinions

But not all think on the line of Mr. Chambers, at least when it comes to the US dollar and its market bias.

Stephen Roach, the former chairman of Morgan Stanley Asia, said in an op-ed that the greenback could crash by at least 35 percent by the end of 2021, citing upticks across foreign currencies and looming macroeconomic issues in the US concerning lower savings and–again–the Fed’s expansionary policies.

“In short, the vice is tightening on a still-overvalued dollar,” Mr. Roach wrote.

The bearish dollar analogy points to more demand for Bitcoin and gold in the coming sessions. Some expect the cryptocurrency would hit $20,000 should the greenback keep falling.

Ethereum Bears Hold Strong At $360: Indicators Show Risk of Downside Break

Ethereum is struggling to clear the $360 and $365 resistance levels against the US Dollar. ETH price is showing bearish signs and it could dive below $350 and $345.

  • Ethereum is still facing a heavy resistance near the $360 and $365 levels.
  • The price is currently stuck near the $355 support and the 100 hourly simple moving average.
  • There is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue lower if it breaks the $352 and $350 support levels.

Ethereum Price is Facing Many Hurdles

Ethereum remained stable above the $350 support level, but it is still facing a heavy resistance near the $360 and $365 levels. ETH started an upward move from the $350 low and climbed above the 100 hourly simple moving average.

There was a break above the 23.6% Fib retracement level of the downward move from the $369 high to $350 low. However, the $360 resistance and the broken bullish trend line seems to be acting as a strong resistance for the bulls.

The 50% Fib retracement level of the downward move from the $369 high to $350 low is also acting as a resistance. Ether price is currently declining and trading near the $355 support level.

Ethereum Price

Ethereum price trades below $360. Source: TradingView.com

It seems like there is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD. If ether continues to move down and breaks the trend line support at $352, there is a risk of a bearish break.

The next major support is near the $350 and $348 levels, below which the bears are likely to aim a larger decline towards the $335 support level in the near term.

Chances of Upside Break in ETH?

If Ethereum manages to stay above the $352 and $350 support levels, there are chances of an upside break. An initial resistance is near the $360 level.

The first key resistance could be near the $362 level, above which the bulls might aim a clear break above the $365 resistance level. The next major resistance is near the $375 zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving back into the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently declining and it is well below the 50 level.

Major Support Level – $350

Major Resistance Level – $360

Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $11K

Bitcoin price is stuck in a broad range below the $11,000 resistance against the US Dollar. BTC is likely to decline sharply if it continues to fail near $10,800 and $11,000.

  • Bitcoin is struggling to gain bullish momentum and it is well below the $11,000 resistance.
  • The price is approaching the 100 hourly simple moving average and the $10,750 support.
  • There is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either surge above $10,850 or it might start a fresh decline towards $10,200.

Bitcoin Price is Stuck in a Range

After a sharp bearish reaction from the $10,950 zone, bitcoin price found support near the $10,650 level against the US Dollar. The bears made a couple of attempts to clear the $10,650 support, but they failed.

The recent low was formed near $10,647 before the price recovered above $10,750. The price traded as high as $10,860 and it is currently correcting lower. There was a break below the 23.6% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin is now approaching the 100 hourly simple moving average and the $10,750 support. It is close to the 50% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin Price

Bitcoin price trades below $10,800. Source: TradingView.com

It seems like there is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair. To start a strong increase, the price must clear the triangle resistance and then the $10,950 zone.

The main hurdle is still near the $11,000 resistance, above which there are real chances of a sustained upward move towards the $11,500 and $11,600 levels in the near term.

Downsides Break in BTC?

If bitcoin fails to climb above the $10,800 and $10,850 resistance levels, there is a risk of a downside break. The first key support is near the triangle lower trend line or $10,650.

A clear break below the $10,650 support might increase chances of more downsides below the main support zone at $10,550. In the stated case, the price is likely to dive towards $10,200 or even $10,000 in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently testing the 50 level.

Major Support Levels – $10,650, followed by $10,550.

Major Resistance Levels – $10,850, $10,950 and $11,000.

Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a Generation

Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a Generation

A few weeks ago, Devere Group CEO and founder Nigel Green said that he believed the U.S. election would bolster the price of bitcoin. Speaking with the financial broadcast MoneyFM on Monday, Green said he also believes that bitcoin will replace gold as the ultimate financial safe haven within the timespan of a generation.

Devere Group CEO Nigel Green is a big believer in crypto assets like bitcoin (BTC) and he’s been more vocal about his forecasts in recent days. Last August, news.Bitcoin.com reported on Green explaining why he thinks the U.S. presidential election would have devastating effects on the U.S. dollar but also bolster bitcoin at the same time.

Green’s firm Devere Group is one of the world’s largest independent financial advisory organizations in the fintech world and the firm’s assets under management (AUM) exceed $10 billion.

On Monday, Green once again spoke about the crypto asset again during an interview with the broadcast MoneyFM. The discussion was prompted by the Singapore Exchange (SGX) invoking two new crypto indexes in order to create a price standard for BTC and ETH throughout Asia.

Green shared his thoughts about bitcoin (BTC) and other digital currencies in the interview and explains why he thinks bitcoin could potentially replace gold.

“I just think [bitcoin] has gradually become more accepted,” Green said. “When you go back to the basics, there’s always been a system of payments in the world. If you go back to bartering, there’s always been some way of people keeping score. With the current situation, we have governments keeping score, and not everyone in the world is comfortable with their own government. So one way of looking at cryptocurrencies is that a computer is keeping score.”

The Devere Group CEO added:

So that’s what we’ve seen over a number years and just gradually more and more acceptance from people. [Bitcoin] is similar to gold, as so much as gold is limited, and obviously young people are more willing to accept a digital currency than perhaps some older people.

Green said that owning U.S. dollars or Venezuelan bolivars is basically equivalent to owning promises from governments. Essentially, citizens are allowing governments to keep score, but the scorekeepers are easily corrupted.

“Of course, what’s happened in recent times has been mass printing of money but it’s really digitally added,” Green stressed. “ If you are flooding the market with extra dollars, then in fact you are devaluing [money]. The advantage of bitcoin is that there is a limited amount. Some people would rather a computer keep score, and some people would not have faith in their government and they would rather have something where there’s a limited amount.”

When asked if his bitcoin prediction was sped up by Covid-19, Green responded that he thinks the coronavirus has fueled his forecast and technology in general.

“Do we really think we will have Singapore dollars in our pocket or will we have digital currencies? I think we accept that ultimately it will be digital currencies,” Green insisted. “The next question is: ‘Is bitcoin accepted as part of that digital world?’ It has become more and more apparent that it is, as younger people are more familiar with [bitcoin] and they trust in that world than perhaps other people,” the Devere Group founder added.

Green continuously noted that there was a strong prevalence of the youth being more geared toward innovations like bitcoin.

“There’s a particular generation that is more trusting in gold, but then there’s another generation coming through,” Green said.

However, he also said he was in his sixties and even at his age he believes digital currencies are easier than storing precious metals. “It’s easier,” Green remarked. “You can put [crypto assets] on your telephone, [opposed] to carrying some gold or storing gold,” he concluded.

What do you think about the Devere Group CEO’s opinion that bitcoin will replace gold in a generation? Let us know what you think in the comments section below.

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StrongBlock launches DeFi protocol but token prices slump 70%

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Bitcoin price in flux: Bulls target $11.5K, bears desire drop to $9.8K

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.