LTC/EUR Breaks Above Ichimoku Cloud, While Bitcoin Pulls Back

It looks like Bitcoin’s cousins, Litecoin and Ethereum are getting their groove back. Meanwhile, Bitcoin may have finally hit a temporary ceiling. LTCEUR rode on a three-day bullish wave. You know how much I love analyzing the market sentiment using the Ichimoku Kinko Hyo. So let’s dig in and see what’s next for our favorite cryptocurrencies.

LTCEUR Crosses Above Ichimoku Cloud

After two whole weeks of consolidation inside the cloud’s daily setup, LTCEUR finally confirmed above the cloud on Thursday. Not only that, the Kijun line appears to just be crossing above the Tenkan line.

LTCEUR-Daily-Chart-Ichimoku-Fibonacci-Analysis
LTCEUR-Daily-Chart-Ichimoku-Fibonacci-Analysis

The downside of this fairy-tale story is that LTCEUR is now hit by the 23% Fibonacci resistance level at 57.92. The future cloud is slightly bullish but mostly flat. Now market participants are looking to see if the 23% Fibonacci holds.

What’s Going On in Litecoin’s World?

As I mentioned in my Tuesday video, the Litecoin rally started one week after South Korean Exchange, Coinone, added the cryptocurrency to its platform.

The exchange has reportedly processed $3.2 million worth of Litecoin in the first 24 hours of trading the cryptocurrency.

Coinone is one of the biggest cryptocurrency exchanges in the country. Korea is in fact, the world’s third-largest cryptocurrency market.

So the recent surge could be fuelled by the volume the exchange brought about by offering trades in Litecoin versus South Korean currency. Volumes on Bithumb, one of the biggest exchanges in South Korea, have also gone up.

However, this may not be the only reason why Litecoin price is going up.

Bitcoin’s cousin may be seen as a safe haven for market participants amid the uncertainty surrounding the Segwit2x hard fork. With that, let’s see what Bitcoin has been up to.

Bitcoin Pulls Back after Developers Call Off Plans to Split it

After showing yet another off-the-chart growth to hit the all-time-high level of $7,800, Bitcoin erased most of this week’s gains on Thursday.

What could be behind the massive volatility? Probably the suspense of its controversial upcoming hard fork.

Bitcoin was scheduled to upgrade on Nov. 16 following a proposal called SegWit2x, which would have split the digital currency in two. However, more and more major bitcoin developers dropped their support for the upgrade in the last few months. With that, on Wednesday,  developers behind SegWit2x announced they are calling off plans for the upgrade. They are waiting until there is more agreement in the Bitcoin community.

What Do the Technicals Say

I must admit, Bitcoin has been one not really following traditional technical analysis measures. The main reason why is that Bitcoin has started to be viewed more as an asset rather than a digital currency.

However, we could still say that the Bitcoin price has hit a new resistance at $7,800. The support level is at $6,957.

As always, please keep in mind that trading cryptocurrencies could be very risky. Speculative trading is even riskier. Before entering a position, you must calculate your risk tolerance to be able to decide on the investment strategy that is suitable for your portfolio.

 

xoxo,

Kiana Danial

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Astronaut, a currently-running ICO that seeks to create and manage an ICO basket of investments along the lines of a conventional mutual fund model borrowed from traditional finance, has indicated that its own research points to ten new ICOs currently coming to market each day.

That figure, derived by ICO research house Picolo Research, which underpins the Astronaut project, appears to consolidate observations made by other, similar outfits which indicate that the numbers of ICOs is continuing to grow at an accelerating rate.

Currently, in the absence of a regulatory framework, no body – public or otherwise – can collate accurate statistics on the subject with any high degree of confidence. However, one study, conducted by another ICO research platform, ICO Examiner paints a very clear picture of the current exponential growth in numbers of ICOs coming to market.

From mid-2016 to the end of the same year, there were just over two dozen ICOs sourced by the study. On the other hand, according to that same article, more than five times that number were observed as coming to market for the first week of October 2017 alone.

Fraud and Opportunistic Token Issues a Growing Concern

Despite the current bans imposed by both the Chinese and South Korean governments, and even with clear warnings being issued to the public by the SEC who themselves are pushing for ICO issues to come under the banner of formal security investments – and thus make ICOs liable to legislation already in vigor – the volume of ICO investment has itself continued to grow unabated in a manner that mirrors the growth of ICO numbers themselves.

According to CoinDesk, the first quarter of 2017 saw combined ICO investments amounting to just under $40 million USD. That figure rose to a staggering $1.7 billion USD by September.

The concern, of course, is that ICOs are now becoming poles of attraction not only for fraudsters but for legitimate actors with weak business models that are managing to attract funding from less discerning investors.

One ICO, PlexiCoin, is seeking over $400 million USD in a bid to become the world’s “pre-eminent platform for Crypto banking.” The project team wraps itself in complete anonymity, yet has of yet to expose any evidence of a Minimum Viable Product.

“The bigger the ICO, the more people seem to want to invest in it,” said Daniel Abela, founder of ClearPoll, whose own ICO has a soft-cap of the slightly more modest figure of $100,000 which sits in line with more traditional start-ups in the same line of business.

“It never once occurred to us to go to market and ask for more than what
we calculated that we would need. On the other hand, we are now under the impression that doing so may have, ironically, discouraged some investors as we are finding with our hard-cap target.”

Ethereum is no stranger to coding crises and wallet mishaps; remember the bug back in July that allowed $30 million of Ether to be stolen from a popular Ethereum wallet client? Well it has happened again, and to the same Parity wallets that were compromised earlier this year.

A vulnerability resulted in the freezing of money in all Parity multi-signature wallets deployed after July 20th when a developer ‘accidentally’ hit a vulnerable patch of code. Some estimates are as high as $280 million in Ether that can no longer be accessed or used by Parity users.

The company has been battling to recover its reputation from a previous code breech which allowed hackers to steal 150,000 ETH in July. The original embezzlement would have been a lot worse were it not for the actions of white hat hackers who helped to recover an additional 377,000 ETH.

Following July’s hack the company issued a patch for the exploit deploying a new library contract with the intention of fixing it. The new code contained another flaw which converted the wallet to a multi-sig wallet which can have ownership taken over.

The parity team made this blogpost to explain the situation:

“Following the fix for the original multi-sig issue that had been exploited on 19th of July (function visibility), a new version of the Parity Wallet library contract was deployed on 20th of July. However that code still contained another issue – it was possible to turn the Parity Wallet library contract into a regular multi-sig wallet and become an owner of it by calling the initWallet function. It would seem that issue was triggered accidentally 6th Nov 2017 02:33:47 PM +UTC and subsequently a user suicided the library-turned-into-wallet, wiping out the library code which in turn rendered all multi-sig contracts unusable since their logic (any state-modifying function) was inside the library.”

The company went on to state that no funds can be moved out of the multi-sig wallets and $152 million in Ether is believed to have been frozen.

Memories still linger from Ethereum’s darkest days of the DAO attack last year which resulted in the theft of $60 million of Ether. This exploit does not affect Ethereum as a whole but it has raised security concerns amongst the community. Fingers are now being pointed at the security of Ethereum and its smart contract coding language, Solidity. Some serious questions will be asked and it is likely that Parity could lose a large portion of its customers, if they ever get their crypto back.

The Blockchain and its associated technologies and uses have piqued the interest of everyone from Bitcoin newbies, Wall Street bankers, but probably more importantly, entrepreneurs and developers.

The application and usage of Blockchain technology, as well as tokenization, is rightly being touted as the next technological wave that will disrupt and revolutionize the technology space as we know it.

With this being known and widely accepted, it begs the question why there is not a mass uptake of businesses and start up latching onto the potential of the Blockchain. But the truth is, utilizing the Blockchain successfully is still a difficult and time consuming operation.

There are many different legal regulations to try and tip-toe around. There is the difficulty and launching and maintaining an active token ecosystem through an ICO, which can also detract from the core business. And there is the development and implementation issues too.

Simplifying tokenization through Simple Token

Simple Token has come to the fore as a potential option for simplifying the process of getting developers onto the Blockchain and utilizing the technologies power. The idea is that Simple token can act as a foundation of a Blockchain business for a company to build upon, rather than building from scratch.

Simple Token allows companies to create, manage, and launch their own branded digital token based on Simple Token, allowing them the use of side chains and the Blockchain ledger for its multiple uses.

This thus allows the company to utilize the Blockchain, have their own form of digital token, but there is none of the afore mentioned difficulties that come with minting their own coin.

Powered by their OpenST Protocol, Simple Token believes that allowing companies to stake their new branded token upon their Simple Token, the company then has an open scalable side Blockchain which functions in a cryptographically auditable manner.

Closing the gap

Because this new technology exists and is making great strides, there is already an arms race of sorts for companies to try and squeeze the most out of it. However, not all companies have the resources or the know how to even enter the Blockchain.

To this end, Simple Token is looking to be the bridge that crossed the gap, allowing any developer or app builder to be a part of the Blockchain revolution. This pushes out the level of ambition and ingenuity and allows for companies to not be left behind.

The technology is burgeoning and growing every day with no one knowing its true limits or reaches However, but opening it up further, and simplifying the process, Simple Token could well be pushing the limits even further.

With more innovations being given a chance to use the Blockchain without the hassles and drawbacks, there can be further growth and development of the scope of the Blockchain.

That’s another day pretty much complete in our bitcoin price trading efforts and it’s been another interesting one. After the revelations of yesterday (that the bitcoin hard fork is now not going to take place, or at least that seems to be the case) price ran up considerably before dipping and correcting as people took profits out of the market.

The hope now is that the volatility is somewhat out of the way. If this is the case, we should see a degree of overarching momentum return to price and – in turn – we should see things start to creep to the upside once more.

We’ll be looking for signals that imply some upside as we go and we’ll be ready and waiting with our short-term strategy to make sure that we don’t miss out on any opportunities to jump in and out as things mature.

So, with that said, let’s take a look at what’s going on and see if we can set up a strategy that we can use to draw a profit from the market on any further movement in line with our thesis. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand right now. It’s a one-minute candlestick chart and it’s got our range overlaid in green.

As the chart shows, the range we are looking at for the session this evening comes in as defined by support to the downside at 7131 and resistance to the upside at 7192. If we get a close above resistance, we’ll jump in long towards an upside target of 7260. Looking the other way, a close below support will have us in short towards an immediate downside target of 7090.

Let’s see how things play out this evening and we will shuffle things about later to reflect any changes in approach.

Charts courtesy of Trading View

As the world woke up to news of the Bitcoin fork cancellation altcoin traders and investors finally had something to smile about. It had been dark days for the majority of altcoins as they had all lost ground in recent weeks to the Bitcoin behemoth.

As with previous Bitcoin forks, traders have been dropping altcoins, many of which can only be purchased with Bitcoin, and ploughing their funds back into the ‘big one’ in order to get some extras when the chain splits. Many exchanges such as Coinbase and Bitfinex promised holders of Bitcoin an equivalent amount of Bitcoin2x after the fork. This also happened with the Bitcoin Gold fork which drove prices to record highs last month.

Everybody loves free stuff so traders have been getting out of the altcoins and moving back into Bitcoin in order to reap the rewards. Bitfinex even allowed traders to buy futures in B2X before the fork, naturally most will be wishing they hadn’t now.

So in what is becoming a somewhat predictable swing of momentum the majority of altcoins were up this morning. Bitcoin itself surged to a record high of $7,800 but rebounded back and seems to have found support at the $7,400 level.

Ethereum has been a flat line for the best part of a month, idling between $290 and $310. It traded towards the top of this channel but has failed to break out of the $310 resistance level at the time of writing reaching a high of just under $313.

Litecoin has fared a lot better breaking out of its own $54 – $58 channel and trending upwards towards last month’s high of $65. The digital currency has had some good news recently when one of the largest exchanges in South Korea opened up trading with LTC. The country is responsible for 25% of the global trade in Litecoin.

NEO has been another winner surging almost 25% in a matter of hours. Previously trading at around $26 the Chinese based crypto formerly known as Antshares shot up to $32 surpassing the $2 billion market capacity in a matter of minutes. Naturally these spikes are unsustainable but NEO is still strong currently trading at around $31 with a $1.5 billion market cap.

OmiseGO is another altcoin that needs a mention as its chart mirrored that of NEO. The undervalued coin rose from a long period of decline of around $6 to a high of $8.5 and is currently trading around $7.8 where it was three weeks ago.

Volatility in crypto markets goes without saying but after a month of doldrums it is finally time for altcoins to get some limelight.

Governments are attempting to recreate the success of bitcoin and decentralized cryptocurrencies like Ethereum with the development of permissioned ledgers and state-owned digital currencies.

Unfortunately, for governments, centralized cryptocurrencies and permissioned blockchain networks will not succeed and ever secure a fraction of bitcoin’s user base for a simple reason: the lack of decentralization and a peer-to-peer protocol.

Myth of Blockchain

Over the past 12 months, blockchain technology has been marketed as a magical technology behind bitcoin that allows any banking system or financial network to achieve the same level of immutability of bitcoin. However, that has evidently been falsified in the past year, given the lack of success by the blockchain industry in commercializing the so-called “permissioned ledgers.”

Like engineers cannot attach the identical engines used to build high performance aircraft to automobiles because of the incompatibility between the two technologies, blockchain technology behind bitcoin and other public cryptocurrencies like Ethereum cannot be integrated into centralized banking systems.

There exists a myth within the global financial sector that blockchain technology powers the bitcoin network, when in fact blockchain technology merely operates as a database within the bitcoin protocol to store and record transactions. As bitcoin and security expert Andreas Antonopoulos previously explained, blockchain is not the technology behind bitcoin, but one of the four fundamental technologies of bitcoin that needs to synergize with three key technologies to function.

“Blockchain is the technology behind bitcoin. Which is incorrect. Blockchain is one of the four foundational technologies behind bitcoin and it can’t stand alone. But that hasn’t stopped people from trying to sell it. Blockchain is bitcoin with a haircut and a suit you parade in front of your board. It is the ability to deliver sanitized clean comfortable version of blockchain of bitcoin to people who are too terrified of actually disruptive technology,” said Antonopoulos.

Citigroup CEO Falsely Believes Governments Can Restrict Bitcoin

At Bloomberg’s Year Ahead summit in New York, Citigroup CEO Michael Corbat stated that governments will introduce digital currencies to compete with bitcoin.

“I don’t think governments are going to take lightly other people coming in and potentially disrupting their abilities around data, around tax collection, around money laundering, around know-your-customer. It’s likely that we’re going to see governments introduce, not cryptocurrencies — I think cryptocurrency is a bad moniker for that — but a digital currency,” said Corbat.

It has been obvious over the past two years that governments are limited in what they can restrict with bitcoin and cryptocurrencies. If governments intend to regulate bitcoin, traders and users will simply migrate to over-the-counter markets, which are significantly harder to regulate. Hence, governments have opted to regulate the space instead, with major markets like Japan and South Korea legalizing bitcoin as a currency and providing necessary regulatory frameworks to deal with the cryptocurrency.

As bitcoin continues to be adopted by the mainstream as a robust store of value and a safe haven asset, fallacious statements intentionally provided by executives and public figures within the traditional financial industry will be rejected by general consumers.

Kim Dotcom has become somewhat of a cult figure in the world of Bitcoin and cryptocurrency. He is a big fan of Bitcoin and aims to integrate it into his future services. However, it seems Dotcom also keeps tabs on Bitcoin Cash. His recent Twitter poll has gotten a lot of attention already. So far, belief in Bitcoin as the superior currency is still very strong  Then again, scalability will remain a problem for quite some time to come.

It is evident Bitcoin and Bitcoin Cash are two very different currencies. One effectively has a lot of value and the other is still struggling to make its mark. More specifically, the past week or so has been kind to BCH as a whole. That doesn’t make the currency a contender for the world’s leading cryptocurrency by any means, though. At the same time, one has to acknowledge Bitcoin itself is not without flaws by any means. Especially when it comes to scaling, there is still a lot of work to be done.

Kim Dotcom Wants a Scalable Version of Bitcoin

Kim Dotcom has been keeping tabs on both currencies for some time now. We all know Bitcache will use BTC as a payment option. However,  there is a chance he may integrate Bitcoin Cash as well. It all depends on which currency will have the largest volume of internet payments. Right now, Bitcoin has a clear lead over BCH. However, that threshold may look very different in a few years from now. A lot will depend on how fast Bitcoin can effective scale. So far, it seems rather problematic, to say the least.

To put this into perspective, SegWit is live on the Bitcoin network. So far, not much has happened to it, though. A lot of service providers have yet to integrate this new solution moving forward. Kim Dotcom will keep a close eye on how this situation evolves. It is in his best interest to accept currencies which scale better. Right now, Bitcoin is more popular, but it is not the best by any means. Bitcoin Cash can natively process far more transactions right now.

It will be interesting to see how this situation changes in the coming years. It seems Dotcom may integrate Bitcoin Cash into his future services if need be. Whether or not this will be the case by 2021, remains to be seen. There is still a lot of work to be done for both BTC and BCH. An interesting future lies ahead, that much is certain. It would be better if we saw more collaboration rather than Bitcoin hard forks.

We have seen a proverbial rollercoaster of news in the Bitcoin world these past 24 hours. More specifically, the SegWit2x hard fork is apparently canceled, although that is not entirely true. Moreover, the B2X trades between Charlie Lee, Roger Ver, and a few others may still go ahead. It will be quite interesting to see how things evolve in this regard. There is no indication of what the future may hold for Bitcoin, that much is certain.

The big news last night was how the SegWit2x hard fork was originally called off. A lot of people are happy about this news, to say the least. After all, the fork makes very little sense to most Bitcoin users. Fracturing the community even further serves no real purpose whatsoever. Then again, this hard fork is not entirely canceled just yet. More specifically, a follow-up email indicates the fork will still happen despite the risks it bears.

B2X Is Still in the Game

Whether or not that is good news for Bitcoin, remains to be determined. Another altcoin riding Bitcoin’s coattails isn’t exactly something we need right now. Then again, there may be more support for this new currency than people would think. In a lot of cases, people just want their free B2X coins and sell them on the open market as soon as possible. There are still a lot of uncertainties in this regard, that much is certain.

One thing to keep in mind is how Charlie Lee proposed a B2X trade not too long ago. The goal is to exchange 250 B2X for 250 BTC. Lee would like to get rid of these coins as soon as possible. Although it is uncertain who accepted this deal, Roger Ver seemed quite keen on the concept. This trade would not go through if there was no fork. With this fork still going ahead, we can expect some fireworks in the Bitcoin world very soon.

While waving with wealth in the open isn’t necessarily positive, this trade will get a lot of attention. That is, assuming it will still go through as expected.There is an interesting time ahead for both Bitcoin and B2X alike. More specifically, the fork may shake things up quite a bit. The coins may not be worth $2,000 or more, though, but no one knows what the future brings. Right now, nothing has changed in this regard. The original excitement regarding the fork being canceled has died down already.

There is an increased focus on blockchain-based financial platforms. One of the companies worth keeping an eye on goes by the name of Zilliqa. The project recently appointed two Fintech veterans as advisors. Moreover, the company performed experiments to process 2,488 transactions per second on the testnet. This high-transaction rate blockchain platform is continuing to make waves in the blockchain and financial sectors.

Good things are happening for Zilliqa as we speak. Earlier this month, their testnet trial was successful beyond expectations. More specifically, the blockchain-based platform processed over 2,488 transactions per second. That is virtually unprecedented in the world of blockchain technology these days. The use of “sharding” allows for a much higher throughput compared to what we are used to in this industry. At its peak, it may even rival VISA and Mastercard. An ambitious goal, but it is not unlikely either.

A Bright Future Lies Ahead for Zilliqa

To support their core team and perhaps indicate that the company is making inroads into the banking technology, Zilliqa recently appointed two new advisors. Former Bank of America Managing Director Alexander Lipton is a major addition to the team. Additionally, Stuart Prior has decades of experience in Corporate and Investment banking. Both of these gentlemen will help elevate Zilliqa to a whole new level in the future. After all, the company is still in the early stages of development. With sufficient scaling, a throughput of 15,000 transactions per second isn’t out of the question by any means.

Zilliqa CEO Xinshu Dong comments as follows:

“We are truly honored that both Alexander and Stuart have agreed to come on board and help us build Zilliqa into world class blockchain platform. The fact these true visionaries in banking and fintech have seen the potential in our technology is a testament to Zilliqa. I’m sure Zilliqa will greatly benefit from their experience and expertise to build the blockchain platform for high-throughput dApps.”

What once started as a research paper in 2015, co-authored by Loi Luu of KyberNetwork, Prateek Saxena from National University of Singapore and others, has become a massive breakthrough in the world of blockchain. Scalability concerns have been present for quite some time now. These issues are still present in most blockchain-based cryptocurrencies and digital assets alike. Especially Bitcoin and Ethereum are limited in transaction throughput right now.

Solving these problems through sharding is one way to address the situation. Zilliqa is clearly ahead of any competitors in this regard right now. The source code of this project and a public testnet will be made public in December of 2017. An interesting future lies ahead for this project, especially when additional developers participate in testing and start building applications on their super-fast blockchain platform.