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Bitcoin (BTC) Stuck Around 4,000, But Analysts Expect a Drop as Upwards Momentum Fizzles

The crypto markets are experiencing a relatively quiet Friday as Bitcoin continues to trade sideways in a tight trading range between $4,000 and $4,100. This stability should not fool traders, however, as analysts expect BTC to drop in the near future as its upwards momentum begins to fade.

If Bitcoin is unable to garner more buying pressure as the markets head into the weekend, it is likely that Bitcoin will drop back into the upper-$3,000 region.

Bitcoin (BTC) Stuck Below $3,900 

At the time of writing, Bitcoin is trading up less than 1% at its current price of $4,040. Throughout this week, BTC has firmly established $4,100 as a level of resistance, as it has unsuccessfully attempted on multiple occasions to break above this price level.

Importantly, however, Bitcoin has established $4,000 as a level of support, as it has bounced after touching this price. Despite this, the true test of Bitcoin’s current strength remains in its ability to advance above $4,200, which was established as a key resistance level last month.

Although the lack of upwards momentum does seem negative, Luke Martin, a popular cryptocurrency analyst on Twitter, recently noted that he is only bearish on BTC in the short-term if the crypto begins tepidly moving towards stronger resistance levels above $4,100.

“If $BTC starts getting higher timeframe 4hr/1D closes below 3930, THEN I’ll consider being bearish short term. Unless you are a short term day trader flipping your outlook between 4400 and 2k after a red 30 minute candle isn’t too helpful,” he noted.

Historically, the crypto markets have been more prone to making large price swings during weekend trading sessions, which means that traders may gain more insight into where BTC is heading next over the next couple of days.

Analyst: Bitcoin Likely to Drop Back into Upper-$3,000 Region in Near-Future

Because Bitcoin is not expressing any signs of significant technical strength at the moment, unless it is able to make a large upwards push in the near future, it may soon drop back into the upper-$3,900 region.

The Cryptomist, a popular cryptocurrency trader on Twitter, spoke about this possibility in a recent tweet, setting a target for BTC at $3,900.

“$BTC Mentioned couple days ago we will see movement for yesterday price action. We dropped and bounced of candle support as RSI support failed. We have 2-3 days to break this 4010 region resistance before we break this candle support and test target #1 at 3900 range,” she explained.

If the crypto does drop back below $4,000, this level will likely be further solidified as a strong psychological level of resistance, which may prove to be increasingly difficult to break above.

Traders and analysts alike will be closely watching to see how the markets respond to their current price levels during the weekend.

Featured image from Shutterstock.

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China’s Orwellian Cashless Payments Show Why Bitcoin Is Freedom

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Like a scene from an Orwellian nightmare, authorities in Shenzhen China show where the future of centralized cashless payments is headed. And it isn’t pretty.


Centralized Cashless Payments in China

China is known for its high rate of technology adoption. Of the 2 billion or so smartphones around the world, two-thirds of them are in China.

Unlike most users in the West, Chinese smartphones are particularly popular for making instant cashless payments. Just about everyone accepts mobile payments, from small street vendors to homeless people.

Up until now, Chinese using WeChat Pay to make a purchase was completely at their will. But the Shenzhen traffic police are about to instantly extract fines from people’s WeChat accounts if they’re caught jaywalking.

Better than that? They’re using facial recognition technology to catch offenders and remove the fines automatically, no questions asked.

Facial Recognition to ‘Name and Shame’ Is Not Enough

In Shenzhen, pedestrians who violate road rules are already named and shamed on giant LED screens. Traffic police use CCTV cameras backed by AI to single out jaywalkers. Their faces are also registered on a government website.

china wechat jaywalking shenzen

AI-enabled cameras are nothing new in China’s most progressive city. The technology was put in place in April 2018 and since then, almost 14,000 jaywalkers have had their faces plastered across the screen at a busy junction in the Futian district.

The Chinese authorities, it seems, really don’t want you crossing the road outside of a designated pedestrian area.

According to Wang Jun, Director of Marketing Solutions at AI firm Intellifusion, quoted in South China Morning Post, however, naming and shaming is not enough.

Jaywalking has always been an issue in China and can hardly be resolved just by imposing fines or taking photos of the offenders… But a combination of technology and psychology… can greatly reduce instances of jaywalking and will prevent repeat offenses.

So, the Chinese traffic police will soon use a combination of facial recognition technology and instant fines by text.

Despite the margin for error (last year, a facial recognition system mistook a face on a bus for a jaywalker), the new system is moving ahead.

Push vs Pull Payments: Centralization vs Decentralization

Since the naming and shaming campaign began, the number of repeat offenders has reduced. Although Wang believes the only incentive strong enough to stop jaywalking completely is to hit people directly in their pockets.

wechat china

Intellifusion is currently in talks with popular Chinese social media platforms WeChat and Weibo. Not only will the jaywalker be notified by text, but their account will be debited some 20 minutes later. Their credit rating will also be affected if they pass a certain limit and violate the rules too many times.

If it sounds like a scene from an Orwellian society, that’s because this is exactly what this is. Big Brother China is showing the world where the future of centralized cashless payments is headed. And it isn’t pretty.

By going ahead and taking funds from violators’ accounts, they impose a ‘pull payment’ strategy, whereby the supplier simply takes the money from the account.

Now, contrast this to a decentralized financial system like Bitcoin, in which account holders send the funds (with their private key) and payments are ‘pushed’ onto the network.

China Has Control Over Your Financial Sovereignty

It’s been clear to the Chinese people for some time now that the authorities are watching them. But with this new initiative, the government will have access to pull payments from its citizens’ accounts, effectively controlling their financial sovereignty.

It’s not only Shenzhen that’s doing it, either. The Chinese are getting trigger-happy with facial recognition technology, with similar projects in Shanghai and Beijing.

What do you think about China’s automatic fines for jaywalking? Share your thoughts below!


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Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in?

Bitcoin’s price action over the past year and a half has been quite the rollercoaster, with many investors incurring nearly instant wealth in late-2017, followed by tremendous losses for those who continued to hold their Bitcoin or other crypto investments.

Despite this, those who held and are still holding are doing so either because of a fundamental belief in the technology, or at the very least a belief that the markets will eventually surge back to, or above, their previously established all-time-highs.

That being said, recent comments from a prominent analyst about the potential Bitcoin’s price has to surge significantly higher will certainly be reassuring for embattled crypto investors who have been discouraged by the recent market conditions.

Bitcoin (BTC) Drops to $4,000 as Support Level is at Risk of Being Broken

At the time of writing, Bitcoin is trading down over 1% at its current price of $4,015, just a hair above its recently established support level at $4,000.

Yesterday, Josh Rager, a popular cryptocurrency trader on Twitter, explained that the lack of buying pressure above $4,000 is likely to lead BTC’s price to $3,500, which may be reached soon if the crypto’s bulls are unable to keep Bitcoin’s price above $4,000.

“$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained.

Naeem Aslam, the chief markets analyst at Think Markets U.K., recently spoke about the importance of the $4,000 level, noting that it will set the trend for which direction the markets head next.

“Questions are being asked constantly when it comes to Bitcoin’s battle with the $4000 mark. The result of this battle sets the tone for a bullish or bearish trend,” he explained, further noting that this price level has become a “matter of death or life for crypto traders.”

Could Bitcoin Surge to $400,000 Next?

Although Bitcoin’s instability around its current price levels does seem to be significant in the short term, in the long term it may be very insignificant, as Aslam believes that BTC could eventually surge as high as $400k.

“I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise. This is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run,” he bullishly explained.

Keeping that in mind, for traders who are waiting to buy the bottom, the risk / reward ratio simply doesn’t make sense.

Ryan Selkis, a popular figure within the crypto industry, spoke about the absurdity of trying to purchase a bottom when there is such a massive potential upside for BTC in a recent tweet.

“I’d be extremely surprised if the bottom wasn’t in for this $BTC bear market. If you’ve been on the sidelines, what are you waiting for if not now? If you’re a long-term bull, the 5 year EV is 25-50x, and you’re going to wait to time an entry that’s 20% more attractive?” He noted.

As the market’s price action continues to unfold, traders and investors should keep in mind the massive potential Bitcoin and the entire markets have to surge significantly higher in the next few years.

Featured image from Shutterstock.

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Vitalik Buterin: If the Price is Zero, Then the Network Can’t Be Secure

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Vitalik Buterin: If the Price is Zero, Then the Network Can’t Be Secure

In his recent live-stream interview with Laura Shin for the crypto journalist’s Unchained podcast, Ethereum co-founder Vitalik Buterin has shared his views on the current situation on the crypto markets and answeres a number of other crypto-related questions including the value of Ethereum (ETH), industry’s regulation, future of ICOs and the work of Satoshi Nakamoto. 

Ethreum Price: What’s Going on 

It’s not a surprise the Buterin was asked about his stance towards the current ETH price. In his opinion, the Ethereum price has a strong influence on the entire market. He explained his position the following way: 

“In part, it was counter-signaling to distinguish [Ethereum] from other crypto projects that do pumping and lambo-ing way too much. But also it was about minimizing the legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.” 

Now regulators as well as businesses and developers have started to realize the nature of cryptocurrencies and the fact that digital assets have their value. What’s more important, now they understand that blockchain applications can bring significant benefits to people’s lives. 

Buterin insists that despite the fact that many people try to claim that prices do not matter at all, it is absolutely not so. Prices play a crucial role in the network’s growth. 

“I can tell you what things are clearly important about why the price being higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake,” explained Vitalik. 

Moreover, many Ethereum-based projects hold a significant part of their funds in crypto. That’s also one of the reason why prices matter. If the price increases, it means that they are more funded. 

ICOs Still Have Future 

Buterin agreed that success of Ethereum greatly depended on the fact that the network was used as a launchpad for a large number of ICOs. Nevertheless, he highlighted that even without Ethereum ICOs would have taken place and developed. 

The only bad thing about ICOs, according to Buterin, is scam. A lot of projects turned out to be scammy and weak which was rather negative for the reputation of other ICOs.  

What Satoshi Should Have Done 

“Satoshi had a really hard job and could not have predicted which way the ecosystem would have went, [that it] would have turned into something more than a science experiment said Buterin when asked about his potential recommendations to Satoshi that he would made if he could go back into the past. 

He also joked that he would advise the Bitcoin creator to build Ethreum 2.0 following the link on GitHub. And it’s not the first time when he tried to show the dominace of ETH. Now so long ago he compared ETH with a smartphone while BTC was named just a calculator. 

Vitalik Buterin: If the Price is Zero, Then the Network Can’t Be Secure

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As Bitcoin (BTC) Nears Historic Bounce Levels, Could the Crypto Winter Be Coming to an End?

Bitcoin has now firmly established its position in the low-$4,000 region, which was previously a strong resistance level for the crypto. Although this current stability is certainly positive for investors, BTC has, on multiple occasions, spiraled downwards after long bouts of involatile trading.

One analyst is now pointing out that Bitcoin is approaching a historic bounce level, which could mean further gains in the near-future are imminent.

Bitcoin (BTC) Trades Sideways Above $4,000

At the time of writing Bitcoin is trading up nominally at its current price of $4,070 and is up slightly from its daily lows of $4,030. Ever since BTC pushed above $4,000 last Friday, the cryptocurrency’s upwards momentum has stalled, leading it to trade in an incredibly tight trading range around its current price levels.

In late-February, Bitcoin swiftly pushed up to $4,200 before incurring significant selling pressure that brought its price back down to $3,800, which validated $4,200 as a strong level of resistance.

Josh Rager, a popular cryptocurrency trader on Twitter, discussed the strength of the $4,200 resistance level in a recent tweet, explaining that he does not believe BTC will be able to break above it any time soon, which means to drop to $3,500 could be inevitable.

“$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained.

Bitcoin Hits a Historic Bounce Level, Could a Crypto Market Surge be Imminent?

Although Bitcoin may now be pressing up against strong resistance levels, its volume is also resting at a historic bounce level, which likely means that increased volatility is right around the corner.

Crypto Thies, a popular analyst on Twitter, discussed this, noting that he expects the crypto to continue upwards, as this bounce level is typically followed by a decent price swing. Despite this, he also notes that the one factor that is going against BTC’s bulls is the lack of any sell climax so far.

“$BTC Volume MA (on bottom) is at historic bounce levels on the 1W. Volatility incoming. Confident in continuation to upside, although positioned to be fine in event of price dump. Always prepare for best and worst case. 1 bear thought I have, is a lack of sell climax thus far,” he explained.

Assuming that Bitcoin is able to build a greater level of buying pressure at its current prices, than there is a high likelihood that a move upwards will occur in the near future.

As the crypto markets enter the weekend, it is likely that they will see increased levels of volatility that stems from the lower-than-average trading volume.

Featured image from Shutterstock.