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Bitcoin and Ethereum: A Look At The Week Ahead

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It was a pretty uneventful weekend for crypto traders. While we saw a decent bounce off the lows for Bitcoin, Ethereum and alts, many crypto traders are still on the sidelines trying to make sense of what the heck happened. Stories of moon, lambo and riches have instead turned to depression, anxiety, and fear.

As a student of the markets and coming from traditional finance, we admit that it’s very difficult to put a true valuation on Bitcoin, Etheruem or alts. Cryptos are only worth what the market is willing to pay and the price action is dictated more by human emotions than anything else.

That’s what frustrates us the most about so-called experts like Tom Lee from Fundstrat, John McAfee, or “BK” Brian Kelly on CNBC. All they do is throw out predictions to keep the public interested in crypto. We all remember how “BK” ran the tutorial on CNBC on how to buy Ripple XRP. He did so at the very top and that segment has resulted in billions of dollars of losses.

But our favorite schiller is John McAfee. Who can forget “if Bitcoin does not get to $1 million, I will eat my d@#k.” His self-promotion only helped John McAfee get tons of airtime and attention. The sad part is that it got many nobs buying Bitcoin at higher prices looking to cash in one day on $1 million.

Bitcoin

Bitcoin traded sideways for most of the weekend. We had an attempted breakout above 6600 that failed pretty quickly. The market is now consolidating in the 6200 to 6500 region.

Chart courtesy of tradingview.com

We don’t think the play here is to be short. There is a ton of support between 5800 and 6200. Every time Bitcoin has tested that region, the dip buyers have come in. We believe that the next $1000 move in Bitcoin will be to the upside. To do so, Bitcoin needs to breakout above 6620, 6640 and 6650. A break above 6650 will get the shorts covering and add some gasoline to the rally. There is still a heavy Bitcoin short position.

Chart courtesy of tradingview.com

Ethereum

Ethereum has gotten crushed this year. Most have said that the cause of last week’s selloff was ICOs rushing to sell the ETH they raised at $1000 or higher. While there is some truth to it and some ICOs did indeed do that, we don’t believe they panic sold at these levels. ICOs had plenty of time this year to sell. Matter of fact, we believe that many of the scam ICOs have been dumping all along and the founders using the proceeds to fly first class, buy lambos, and enjoy a jet-set lifestyle off their investor’s ETH.

We argue that the ability for more investors to go short has had the devastating impact on the market. Like we saw last year with Bitcoin futures, the ability to bet against cryptos was too enticing for deep-pocketed Wall Street investors to sell into. It is far too coincidental that Bitcoin topped out right around the time Bitcoin futures were introduced by the CBOE and the CME.

For many crypto traders, the ability to go short is easily done on BitMex. Have a look at the ETHUSD daily chart on BitMex. What does it tell you?

Chart courtesy of tradingview.com

The selling pressure has been relentless and driven the price down. Judging by this chart, we believe a strong bounce is bound to occur and send ETH to the $360 to $380 by just using simple Fibonacci retracements.

Bottom Line

We are big believers in price action. Without any proper valuation tools, that’s all crypto traders can really go in. While we see many chartists using complex theories, we prefer KISS – Keep Things Simple Stupid. Use basic support and resistance levels and remember that cryptos are all about momentum. Buy high, sell higher. Sell lower and buy lower.

Happy Trading~

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer. This author is long Bitcoin and Ethereum.

Image courtesy of Pexels

Charts courtesy of tradingview.com

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Bitcoin

How Casinos Are Embracing Cryptocurrency

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Digital currencies and blockchain technology have had an immense impact on several industries across the globe. One of the areas where this impact has been very profound is in the gambling sector – which has also been known for embracing the latest technologies. Gaming operators have always been at the frontlines when it comes to trying out new and innovative technologies all in a bid to keep their customers happy and interested.

That said, it was only a matter of time before cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin among many others made their mark in the gambling industry. All of the features that these digital currencies promise are, without a doubt, very desirable features for gamblers across the world.

The result is a mutually beneficial arrangement where digital currencies get the necessary boost to go mainstream while the gaming operators get a front-row seat as the world ushers in the new age of next-generation digital payments. Naturally, there has to be a framework for this and thankfully its already being implemented in both land-based casinos and in online gambling platforms. 

Crypto in Land-Based Casinos

Cryptocurrencies, since their conception, have always been digitized forms of payment. However, nearly everything is digitized nowadays. Still, brick-and-mortar casinos rely greatly on existing systems all…

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Reaching true Bitcoin anonymity through the use of mixers

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There used to be a time when Bitcoin transactions were considered fully-anonymous. Back then, cryptos were only getting started, and Bitcoin was pretty much the only one that was used, apart from a handful of the first altcoins that followed. However, as the crypto industry continued to develop, current blockchain analyzers were created, and it became clear that Bitcoin’s transparency also includes tracking the coins’ movement, even when you are simply withdrawing them from your exchange to your wallet.

This is why it became necessary to use Bitcoin mixers, also known as Bitcoin blenders or Bitcoin tumblers, such as BitMix.biz, in order to reach true anonymity.

What are Bitcoin mixers, and why do you need them?

Bitcoin mixers, as the name suggests, are online services that mix Bitcoins in order to disrupt their traceability.

Let’s say that you have a certain amount of BTC in your wallet on your crypto exchange of choice. With all the exchanges having to follow KYC/AML procedures, that means that you need to verify your identity, so that the exchange — and therefore, the authorities — will know exactly who you are and how much money you earned through trading and investing.

Once you withdraw those coins to your wallet, blockchain analyzers can track the transaction, and so your wallet…

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The Bitcoin Meltdown is Chance to Double Your Bitcoin

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Most of the cryptocurrency holders have never felt a day so bad.

After a blustering day of trading which saw Bitcoin price drop from $7,950 to $3,800, the massacre caused the worst sell-off to set a new 2020 low which not seen since April 2019.

The history of bitcoin only has a day in 2013 to compare a 40% fall, at that time bitcoin once dropped from $266 to $50, that was also a day when despair defeated the belief of bitcoin and almost no one could foresee bitcoin can recover and prices will reach $10,000 in a few years.

“Be fearful when others are greedy and greedy when others are fearful.” This is what Warren Buffett said about stock market and you can see the stock market never dies, it is just rise and fall happen in a different order at different times.

So it is with bitcoin. The bitcoin meltdown is a chance for a few bitcoin traders while the others are running away.

One typical way is to short bitcoin. Futures trading allows traders to make profits out of the future price difference of the derivatives. However, when during horizontal movement of prices, futures trading may gain you fewer profits to cover the possible loss of the margin.

Is there…

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