Bitcoin Price Watch; That’s A Wrap!

So there it goes, another week down, and what an interesting week it’s been. Well, interesting maybe isn’t the right word. Perhaps frustrating is a little more apt as a description. The bitcoin price was basically flat for a few days at the beginning of the week, and we started to think that maybe there was a long stretch of sub-1000 action ahead of us. Price didn’t look like it was going to break, and volume didn’t look like it could support a break even if price decided to, and out intraday strategy was looking decidedly ineffective. We managed to get in and out on a couple of quick turnaround breakout trades. We also managed to get ourselves stopped out on a couple of occasions. We went into this morning’s session with an albeit narrow net gain on the week’s action. But that wasn’t all. We also went into it with a bitcoin price above 1,000, and looking as though it was set to stay there ahead of the weekend. That’s important from a long term sentiment perspective, and long term sentiment is – by proxy – important for near term volatility.

So, the European session has now drawn to a close, and we’re looking at the US afternoon to close out the week.

Let’s set up some levels to go at, and see if we can end the week on a high. Take a quick look at the chart below to get an idea of what’s on.

As the chart shows, the range that we are focusing on this morning is defined by support to the downside at 1028, and resistance to the upside at 1039.

If we get a break through support, we will look for a close below that level to put us short towards 1020 flat. Conversely, a close above resistance will get us in long towards 1048.

Have a good weekend!

Charts courtesy of SimpleFX


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Quite a few intriguing services have launched in the bitcoin ecosystem over the past few years. There seems to be an intriguing correlation between cryptography and steganography. One developer created a project that turns any image or document into a bitcoin private key and address. A great tool on paper, but not very practical by any means.

While this concept may have some appeal to consumers, it is not a secure solution by any means. Having to use an image or document to create a bitcoin wallet address sounds convenient. The process itself is very simple and straightforward as well. In a way, this can attract more people to the bitcoin ecosystem as a whole.

Not The Best Way To Secure a Private Key

Unfortunately, those who rely on this project have a big chance of losing their funds. Any amount of bitcoin stored in wallets generated through this platform is at risk. All it takes is for a different person to upload the same document or image. By doing so, they will receive the identical wallet address and private key

From a security point of view, the project is not viable by any means. Then again, the code is on GitHub, allowing anyone to make changes and propose improvements. It is evident this concept will need a lot of work before it is even feasible to try, though. Implementing a way to check for duplicate images and documents would be a good place to start.

Moreover, the idea of using a public image to create a wallet address and private key seems a bit ludicrous. There is no such thing as a unique image these days. Although chances are small someone else may have used it before you, there’s no reason to risk it either. Private pictures are a possible solution. However, that requires users to keep them private at all costs. In the real world, doing so is virtually impossible right now.

It is important to note this project is a proof of concept, and not something that should be used by anyone in its current form. It does take steganography to a different level, albeit there is no hidden information embedded in the image itself. It is an intriguing take on things, but lacks security to be considered a useful project right now.

Header image courtesy of Shutterstock

The increasing regulatory pressure on the Chinese Bitcoin market seems to have claimed its first victim. Samson Mow, the Chief Operating Officer at BTCC, one of the leading Chinese cryptocurrency exchanges, has announced his plans to quit the company.

The announcement was made by Samson on his Twitter channel earlier yesterday. The Tweet read,

“Today’s my last day at @YourBTCC. It’s been an incredibly eventful & exciting 2 years working with @bobbyclee to make #bitcoin great again.

As the cryptocurrency community continued to guess the reason behind Mow’s departure, the CEO of BTCC Bobby Lee cleared the air by tweeting the reason behind the COO’s recent decision. Bobby said,

“@Excellion has been our COO for 2 great years. I’m sad to announce that he will leave @YourBTCC this week to be with his family in Canada.”

It is quite possible for Mow’s decision to be influenced by the latest developments in the country’s regulatory atmosphere. But, there are no clear indications to support such speculations at the moment.

However, Samson Mow’s announcement has received a warm response from the Canadian Bitcoin community. Francis Pouliot from Bitcoin Embassy Canada has welcomed Mow to the North American nation by tweeting,

“…@YourBTCC your loss is our gain! Welcome back to Canada Samson!”

Amid the regulatory crisis, BTCC has extended the period of Bitcoin withdrawals on its platform. The company had announced that there would be a 72-hour holding period for any BTC and LTC withdrawal requests. Soon after, it was extended to 10 days, and now the platform has pushed it further, till March 15, 2017.

BTCC’s customers will no longer be able to access their cryptocurrency funds until the platform verifies all withdrawals. While the platform works on setting-up a verification system in place, users can continue depositing and withdrawing fiat currency on BTCC. The cryptocurrency withdrawals might get further delayed if the platform doesn’t implement the necessary changes in time.

Ref:  Twitter | Image: NewsBTC

Well, here we go – another week pretty much done and just a single session left before we close out for the weekend. It’s been a bit of a strange one. The bitcoin price started out pretty much flat on the week, trading below the 1000 threshold that we waited so long for it to break towards the end of last year. Many claimed that the run through to 1300 seen in January was a bit of a fluke run, and that it was hysteria supported. To a degree, it probably was, but towards the end of this week, price has broken back through the 1000 threshold, and it looks as though things are back on track for some strength.

If the are, and if we can set up correct against today’s session, then we may be able to pull a profit or two from the markets heading into the weekend.

So, with this noted, let’s get some levels outlined for the session this morning, and see if we can put forward some areas of focus for the European morning initially, and then a little later on we will try and refine these (in response to any action throughout Europe) ahead of the US afternoon.

As ever, take a quick look at the chart below to get an idea of what’s on, and where things stand.

As the chart shows, the range we are looking at for this morning is defined by resistance to the upside at 1028 flat, and support to the downside at 1019. Just breakout for now, because this range is a little too tight for us to target an intrarange strategy.

So, a close above resistance will get us in a long entry towards 1038. Conversely, a close below support will put us in short toward 1010. Stop losses just the other side of our entry on both positions will take us out if price reverses.

Charts courtesy of SimpleFX

It appears some bitcoin community members are not taking kindly to Charlie Lee’s plans right now. Litecoin is experimenting with SegWit signaling support as we speak. Whether or not this is a ploy to impose SegWit on bitcoin users in the long run, remains to be seen. Some people feel Charlie lee is forcing SegWit upon litecoin miners, albeit they are free to not support it if they prefer that option.

Introducing Segregated Witness into Litecoin could have interesting consequences. On the one hand, people see this as a “test run” to determine is SegWit is beneficial to bitcoin. Moreover, if LTC integrated it successfully, it may increase the chances for activation on the bitcoin network too. Whether or not that will be the case, remains anybody’s guess for the time being, though.

Charlie Lee Has Multiple SegWit Contingency Plans

Additionally, some people seem to take offense to Charlie Lee’s recent statement. He mentions how changing Litecoin’s proof-of-work algorithm may be needed to activate SegWit. Some miners will oppose SegWit for political reasons, which may require a more ‘drastic” approach by the developers. While they do not prefer changing the POW by any means, it is a possible solution to have this feature activated on the network if all else fails.

Looking at the /r/Bitcoin comments, it is evident few people think this is a good idea. Understandably so, as such a drastic decision could spell the end for litecoin once and for all. Additionally, they feel the development of these currencies is far too decentralized. In a way, they are not wrong for thinking along those lines. It only takes one or two people to make these changes a reality.

To make matters even worse, Charlie Lee mentioned how there as an alternative plan. Even if there is no miner consensus, he can still force SegWit activation for litecoin. Albeit Charlie Lee did not elaborate on this statement, it is a very worrisome thought. No one knows for sure how a soft fork would be forced upon the community, though. Then again, it is not something we should ever hope to experience either.  

It is evident any discussion related to SegWit will not be a happy one. There are those in favor and those who oppose it, which makes for intriguing discussions. Unfortunately for litecoin, forcing SegWit upon the community may backfire sooner rather than later. Creating contingency plans if there would be no miner consensus is interesting, albeit somewhat premature at this stage.

Header image courtesy of Shutterstock

Key Highlights

  • ETH price is still below the $12.70-80 resistance area against the US Dollar.
  • There is a bearish trend line formed on the hourly chart of ETH/USD (data feed via SimpleFX) with resistance at present at $12.70.
  • On the downside, the $12.40 looks like a decent support, acting as a barrier for more declines.

Ethereum price is struggling to clear the $12.70-80 resistance against the US Dollar. Let’s see if ETH/USD can break it or not?

Ethereum Price Resistance

Yesterday, we saw a contracting triangle pattern with support at $12.50 in ETH price against the US Dollar. The stated support area still holds, but it looks like the price is struggling to clear the $12.70-80 resistance area. On the downside, the 38.2% Fib retracement level of the last wave from the $10.987 low to $13.229 high at $12.37 is preventing the downside. However, the ETH buyers need to gather strength for more gains.

On the upside, there is a crucial resistance formed. A bearish trend line formed on the hourly chart of ETH/USD (data feed via SimpleFX) is aligned near $12.70. It is preventing an upside break. It looks like the price is forming a higher low pattern, as there were consistent moves, but no new high. So, there is a chance of ETH price sliding once before completing the pattern. However, there is a convergence sign, which also suggests an upside break.

Ethereum Price Technical Analysis ETH USD

So, we can say that there are mixed signals and indecision. In my view, there can be an extension of the current correction towards the 50% Fib retracement level of the last wave from the $10.98 low to $13.22 high at $12.10.

Hourly MACD – The MACD is almost flat now with no major sign of a break.

Hourly RSI – The RSI is still holding the 50 level, which is a positive sign.

Major Support Level – $12.40

Major Resistance Level – $12.80

 

Charts courtesy – SimpleFX

Bitcoin Price Key Highlights

  • Bitcoin price recently broke past the symmetrical triangle consolidation resistance visible on its short-term time frames.
  • Price made a push higher but bulls still seem to be struggling to maintain the momentum.
  • This could be indicative of bitcoin price action from here as the lack of liquidity has yielded lower volatility.

Bitcoin price is struggling to establish its uptrend but the lack of market liquidity is preventing it from gaining stronger bullish traction.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is to the downside, but the gap between the moving averages is narrowing so an upward crossover might be due. In that case, bulls could step up their game and push for stronger gains, possibly until the highs at $1100.

These moving averages are close to the triangle support, which could be the line in the sand for any major correction. A break below this area could signal that the previous rally was a fakeout and that sellers are regaining control of bitcoin price action.

Stochastic is already indicating overbought conditions and is turning lower, also confirming that bears are getting ready to take the upper hand. RSI is also pointing down so bitcoin price could follow suit if it moves lower to reflect a pickup in bearish momentum.

Market Events

Recent updates in the Chinese bitcoin market have put investors back in a cautious mood, waiting for announcements on stricter regulation or potential penalties for cryptocurrency holders. This phenomenon was seen earlier this year as rallies retreated on the government’s crackdown efforts but the climb soon resumed when these issues were out of the headlines.

News that a couple of exchanges had to halt client withdrawals to comply with the ongoing investigation on money laundering put bitcoin price on the back foot, as several investors cashed in on their holdings immediately. For now, markets are in wait-and-see mode but a return in confidence and risk appetite could still keep bitcoin afloat.

Charts from SimpleFX