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Crypto Sentiment Remains Bullish As Bitcoin (BTC) Holds Above $4,000

It isn’t a secret that over the past few weeks, community sentiment has begun to shift. Taking a brief look at Crypto Twitter, more analysts seem to be bullish on Bitcoin (BTC) than ever before in this bear market. But why are they so hopeful? And better yet, what do they see in crypto’s cards?

Analysts Think Bitcoin Is Still Piping Hot

As reported by NewsBTC over recent days, the cryptocurrency market has been a slow and steady grind to the upside. On Saturday, the asset surmounted the auspicious $4,000 level, as its daily trading volume surpassed $11 billion for the first time in months.

Related Reading: Analyst: Ethereum (ETH) Likely to Surge Towards 200 as Entire Crypto Markets Pump

But, some optimists claim that further moves to the upside could very well be on the table. Crypto Thies, a prominent trader, recently drew attention to the reading that his proprietary technical indicator, the slyly-named Market God, has posted. He notes that the three-week iteration of this signal has issued a buy for the first time since October 2016, when BTC was at a mere $500 and readying up to embark on a paradigm-shifting uptrend to $20,000.

The reason why this is relevant is that the same indicator called the early-2018 sell-off, along with a number of key events in this budding market’s relatively short history.

Crypto analyst Income Sharks has also floated positivity in recent trading sessions too. He explains that from the perspective of the on-balance volume (OBV) indicator, which relates demand through volume and sentiment through price. BTC has begun to show “bullish breaks,” adding that more likely than not, sellers are exhausted at $4,000.

Where’s BTC Going Next?

Sure, the sentiment is widely and wildly positive. But where do analysts see BTC heading to next?

Popular trader Filb Filb recently laid out his reasoning for why Bitcoin could very well hit $5,000 by May.

He notes that a number of technical measures have started to turn in Bitcoin’s favor. Filb specifically drew attention to the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero. The analyst also touched on Chaikin Money Flow (CMF), which measures buying and selling pressure, which has begun to signal that there is underlying buying pressure in BTC markets.

It was added that over recent days, Bitcoin has begun to test a “macro 14-month resistance” downtrend, and could break into higher lows if it surpasses that level, which would then turn into support. A move above this level, which would push BTC into a “huge void” of volume, meaning that rallies and drawdowns could be accentuated with little-to-zero volume, could aid the cryptocurrency in reaching $5,000 and beyond in the coming weeks.

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QuadrigaCX Imbroglio Takes a Turn After Widow Claims CEO Mixed Personal and Company Funds

The crypto community has been sitting at the edge of their seats watching the complex and nuanced situation surrounding the now defunct QuadrigaCX exchange unfold. Recently, news broke that Big Four Auditing Firm, Ernst & Young (EY), had discovered that the exchange’s cold storage wallets were nearly entirely empty, which came as a surprise to many hopeful victims of the exchange.

Now, however, the situation has grown in complexity after the widow of QuadrigaCX’s now deceased co-founder and CEO, Gerry Cotton, claimed that he was mixing his personal funds with company funds in an effort to make customers whole during a previous legal battle with a bank.

QuadrigaCX’s Troubles Began Far Before CEO’s Death

Although the crypto community first grew aware of QuadrigaCX’s illiquidity following Cotton’s death earlier this year, a recent statement from his wife and the executor of his estate, Jennifer Robertson, elucidates that the exchange’s troubles began long before his death.

“While I had no direct knowledge of how Gerry operated the business, he told me that he had been putting his own money back into QCX to fund user withdrawals in 2018 while the CIBC money remained frozen,” Robertson explained in a recent statement to CoinDesk that was sent by law firm Stewart McKelvey.

Her statement comes just a few weeks after court-appointed auditing firm Ernst & Young discovered that the cold wallet addresses associated with the exchange were empty, which dispelled the rumor that the stem of the exchange’s problems was simply a lack of access to user’s funds.

Furthermore, as NewsBTC previously covered, an investigative report published on the Zerononcense Blog has claimed that Cotton may have been moving up to 600,000 Ethereum (ETH) from cold storage and into a plethora of exchanges.

“Based on the transaction analysis included in the report, it appears that a significant amount of Ethereum (600,000+ ETH) was transferred to these exchanges as a means of ‘storage’ during the years that QuadrigaCX was in operation and offering Ethereum on their exchange… it is very possible that QuadrigaCX, the creditors, and other entities are unaware of this discovery,” the Zerononcense Blog report explained.

Do the Exchange’s Victims Have a Chance of Recovering Their Lost Funds?

If it is true that Cotton had been transferring hundreds of thousands of ETH into accounts held at various cryptocurrency exchanges, and these funds can be tracked, then there is a possibility that the victims of QuadrigaCX’s illiquidity may be able to recover some, or all, of their lost funds.

Robertson further affirmed in her statement that her main goal is to is to give affected users the greatest chance of recovering their lost assets.

“Following my husband, Gerald (Gerry) Cotten’s sudden and unexpected death, I arranged for the CCAA process to start by providing the initial funding and agreeing to act as a director of the Companies. The goal from the outset of the CCAA proceeding was to benefit QCX and the Affected Users by giving QCX the greatest chance of recovery of its assets,” she claimed.

At the time, it still seems as though user’s best chance of recovering any funds is that the ETH Cotton reportedly transferred is still sitting, untouched, in accounts on the various exchanges.

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Winklevoss Twins Claim Crypto Could Ultimately Be a Strong Social Network, But Will Increased Regulation Lead to This?

There’s no question that the relatively small and niche nature of cryptocurrencies in their current state leads them to have a strong community of avid supporters backing them, but on multiple occasions the crypto community has seen itself be divided along the lines of individual digital currencies.

Despite this occasional tribalism, the Gemini co-founders, Cameron and Tyler Winklevoss, recently explained that they believe crypto could ultimately be one of the strongest social networks in existence, and they hope to play a role in making that happen.

Winklevoss Twins: Money is Currently One of the Strongest Networks of Value

The twin’s recent comments regarding the future of cryptocurrencies as a highly social and uniting force came about during an interview with CNN, where the twins discussed their exchange – Gemini – as well as the relatively recent release of their exchange’s mobile app.

With regards to the perceived riskiness of the cryptocurrency industry, the twins explained that their goal is to provide users and investors with a highly regulated platform that is conducive to eliminating at least a portion of the risk that is inherent with all nascent markets.

Although this sentiment may seem reasonable to those who are new to the industry, crypto purists frown upon such sentiments, as a small sect of the crypto community believes that cryptocurrencies are a means to bypassing – and ultimately eliminating – the very centralized institutions that impose regulatory frameworks.

Recently, a Gemini ad campaign raised the eyebrows of these individuals – whose views tend to lean towards Libertarianism or in extreme cases, anarchism – as the exchange claimed that “crypto needs rules.”

Nick Foley, a former support representative at Coinbase and a Bitcoin enthusiast, reacted to the ads earlier this year in a tweet, saying that crypto doesn’t need increased government intervention via regulations.

“Rules like mathematics? Sure. Crypto needs that. Rules like ‘KYC AML licencing taxation Patriot Act bitlicense bullshit?’ No. Crypto doesn’t need that.”

Despite this, Gemini’s mission is clear, and as explained in the interview, their goal is to allow users to “engage with crypto in a regulated, compliant, trusted way.”

Building Trust is Critical for Positive Market Growth

While speaking at the South by Southwest conference in Austin, Texas, the two brothers doubled down on their credo that regulation is a key element of increasing trust in the industry, and pointed towards the recent QuadrigaCX imbroglio as a key example of why investors will continue to be weary of the industry so long as it remains an unregulated frontier.

“There are a lot of carcasses on the road of crypto that we’ve seen and learned from… At the end of the day it’s really a trust problem. You need some kind of regulation to promote positive outcomes,” Cameron Winklevoss explained, further adding that increased oversight and compliance will positively affect Bitcoin’s price.

Although it may be a controversial view amongst a few select Bitcoin and crypto enthusiasts, with the increased hype surrounding large financial institutions entering the rapidly evolving industry, as well as continued talk about the distant prospect of a Bitcoin ETF being approved, it is clear that investors are widely looking towards events that largely based on increased regulation as catalysts for the next bull run.

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Bitcoin Could Collapse To $800 If Late-2018’s Plunge Is Mirrored, Warns Crypto Analyst

Another day, another foreboding piece of analysis. A leading analyst claims that as Bitcoin (BTC) has yet to break out of its current range, there’s a growing potential that the cryptocurrency could fractal, and undergo a drop that looks much like that seen in November of yesteryear.

Bitcoin Could Fall Again To New Lows

Financial Survivalism, an up-and-coming analyst centered around Bitcoin, recently took to Twitter to issue a harrowing comment. He noted that the longer than BTC fails to surmount a long-term declining trendline at ~$4,600, the higher likelihood that the cryptocurrency’s price could “mirror the price action from September 20th to November 25th of last year.

Per the analyst, this would mean that BTC could trade flat for another two to three months, before falling dramatically to the $800 price point. This, of course, is a worst-case scenario, but Survivalism does allude to a good point about market cycles and behavioral finance.

Interestingly, this isn’t the first time that Survivalism has been overtly bearish. In an array of previous posts, the former insurance agent noted that if BTC is following a Hyperwave trend, which is primarily applied to bubbles like crypto, Dotcom, etc., the asset could eventually revisit where it peaked in the 2014/2015 market cycle. Survivalism argues that this point is around $1,200, but would set the stage for another parabolic rally eventually.

Related Reading: Uncertainty About Bitcoin Is Gone, BTC Falling To $1,000 Unlikely: Researcher

Still Bullish On Crypto

While the analyst seems to be convinced that BTC will establish lower lows in the medium-term, he is still somewhat bullish on both the short and long-term. In his latest market update, posted on TradingView for free, Survivalism drew attention to his favorite set of technical indicators and how they read at current. BTC in relation to CME/CBOE futures currently has a 0.68% spread, while the number of sell-side futures is showing signs of breaking down, potentially in a market-wide short squeeze.

The TD sequential, used primarily to track trends, has flipped bullish, as Bitcoin holds above its Ichimoku Cloud. As the Relative Strength Index reads sub-50, BTC remains above its short-term moving averages, and the Stochastic Oscillator just issued weekly and monthly buying signals, Survivalism argued this confirms that there’s a chance that the flagship cryptocurrency could move higher in the short-term.

For the long haul, Survivalism seems to be all but convinced that the U.S. economy and macroeconomy will begin to buckle under the weight of its debt and other fiscal shortcomings, potentially setting a stage for the creation of a Bitcoin standard or a system of similar caliber. The full-time trader isn’t the only convinced that a financial revolution is on the horizon. Travis Kling of Steven Cohen’s Point72, for instance, has begun to claim that the Federal Reserve’s enamorment with printing money will likely end in disaster. But as to when that will occur, he was hesitant to say.

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Don’t Count Facebook’s Crypto Or JPM Coin Out, They Could Boost Bitcoin

At long last, incumbent corporations of legacy industries have begun to delve into cryptocurrencies, not just blockchain technologies. While Bitcoin (BTC) has continued to struggle, save for its relatively stellar performance over February, Wall Street darling JP Morgan and Silicon Valley’s Facebook have announced serious intentions to offer their own digital assets.

Although the two multi-national enterprises seemingly have the best intentions, these offerings are inherently controversial. The ‘cryptocurrencies’ they intend to launch will be centralized, which goes against the raison d’etre that Satoshi Nakamoto touted from day one until his disappearance.

Centralized Digital Assets May Spark Bitcoin Adoption

Yes, that’s right, an argument has been made that centralized digital assets could spark Bitcoin adoption. Ari Paul, the founder of BlockTower Capital, noted that while the so-called “coporatecoins” will operate in an intranet, they aren’t all bad per se.

Paul elaborates that while these assets are inherently “uninteresting” to fervent crypto crusaders, who are enamored with censorship resistance, immutability, security, and peer-to-peer systems, centralized cryptocurrencies will “increase global interest dramatically.”

Laying out a hypothetical scenario, the BlockTower chief investment officer notes that 30 million of Facebookcoin users (10% of Paul’s hypothetical audience of 300 million) could eventually “stumble across Bitcoin,” meaning that the (decentralized) cryptocurrency’s community would double in size, no questions asked. Not only would this bolster adoption, but this influx of users would also increase Bitcoin’s network effects, thus increasing the value of BTC.

He added that blockchain ecosystems propped up by traditional firms will also provide infrastructure and services that could be used “directly or indirectly” by permissionless cryptocurrencies. Thus, Paul concludes that while some are wary of the threat Facebook and JP Morgan pose to decentralization, their crypto forays could be a net benefit for the broader space.

Tim Draper, a world-renowned venture capitalist that has long been a believer of Bitcoin, also made a similar point in an interview with Fox Business. The American investor noted that JPM Coin is “great news” for the broader crypto space. Although he did admit that the bank-backed coin, which he dubbed a clear “Bitcoin knock off,” is unlikely to do particularly well,” it was made it clear that this news should catalyze more public awareness of the flagship cryptocurrency.

Related Reading: Tim Draper Paid $18 Million For His First Bitcoin Batch, What’s it Worth Now?

Some Crypto Diehards Have Begged To Differ

Although Paul’s point is sound, some decentralists have claimed that JPM Coin is a trojan horse, if you will, into the coveted society that is true cryptocurrencies.

Max Keiser, an anti-establishment advocate that frequents RT, took to Twitter to overtly bash JP Morgan’s efforts. In a scathing comment, Keiser noted that Jamie Dimon showed up to a fight against Bitcoin with a “wet noodle,” this, of course, being the Quorum-based cryptocurrency that will likely be under the sole control of the world’s sixth largest bank.

Libertarian Travis Kling, a Wall Street hotshot turned crypto hedge fund manager, told Bloomberg that JPM Coin resembles a Google Sheet or Excel spreadsheet, rather than a decentralized, permissionless network much like Bitcoin. Tom Shaughnessy, the principal analyst at crypto-centric research boutique, Delphi Digital (which recently merged with 51Percent Crypto under Morgan Creek Digital’s tutelage), echoed this sentiment. Shaughnessy simply quipped that the asset is centralized, and will provide scant transparency when it goes live.

Brad Garlinghouse, the chief executive of Ripple Labs, took to Twitter to claim that the institutionally-backed stablecoin is much like launching “AOL after Netscape’s IPO.” This is evidently in reference to the earliest Internet browsers that garnered traction at the start of the Dotcom boom and bust during the turn of the millennia.

Yet, this hasn’t stopped Dimon from pushing the venture, likely created in a bid to bolster his institution’s bottom line. Per previous reports from NewsBTC, the Wall Street chief executive recently remarked in a shareholders meeting that his company’s token could see use in consumer contexts, like in digital marketplaces. This idea wasn’t fleshed out, but Dimon let his comment sit with the public, as many netizens argue he is looking to stir controversy with cryptocurrency natives.

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