Will Bitcoin Fall Below $10,000 In the Near Future?

AlexH

Starting on Monday 21st of September, Bitcoin broke the $10,250 and $10,200 support levels to move deeper into the bearish zone. It failed to correct the value drop and continued to go further below $10,200 against the Dollar, recording an overall decline in value of 4.5%.

This is the largest single-day decline since the beginning of the month and came as a result of the renewed Covid-19 fears and the many questions surrounding the upcoming US elections. What’s more concerning, Bitcoin remains at high risk of moving below $10,000 in the near future. So, will it be able to correct higher and mitigate the current losses? Read our take on it.

The Current Market Situation

The BTC/USD pair is currently correcting upwards, though the support near the $10,300 and $10,450 levels could prevent the further gains for the pair. The cryptocurrency even dropped below the $10,200 support level, eventually falling below its 100 simple moving average fluctuations. It also set a negative benchmark record for the week, breaking the 23.6% Fib retracement level of the latest fall, going from the $10,528 high to the $10,135 low. After this, Bitcoin attempted another surge to clear the $10,500 major resistance zone but failed.

As a reminder, Bitcoin already saw a big decrease in value, falling from $12,000 to $9,000 back in the second half of July this year. Since then, the DXY has been largely restricted to a range between 92 and 94. This is mainly because a move above 94.00 would confirm a solid breakout and weight over Bitcoin, which would lead to continued selling and further pressure on the leading cryptocurrency.

Historically looking, September and October are generally very rough months come election year in the US. While Nasdaq is on its way up and recovering, Bitcoin, as well as both silver and gold, are still trading further down this month. It wouldn’t be surprising if Bitcoin continues on its steady decline in the next few weeks, as the overall uptick can be expected once the US presidential election concludes in the next couple of months.

Extended Losses Looking Likely Soon?

Looking at the latest technical indicators, you might rightfully think that more losses are predicted in BTSs near the future. The hourly MACD is slowly going into the bullish zone, while the hourly RSI for Bitcoin/US Dollar is near the 40 levels.  With that in mind, if Bitcoin continues to fall and fails to recover its value above the $10,350 and $10,550 level, there’s no way of telling how low will this cryptocurrency go. The next major support is near the $10,200 and $10,100 levels.

But, the main issue is still the resistance that’s around the $10,550 level and the connecting bearish trend line. If Bitcoin’s price remains below the $10,550 level, the crypto will still be at risk of a larger decline in value.

However, it’s important to keep in mind the upside of the current situation. The previous support zone, which was around $10,300, is now acting as a strong resistance. If it manages to hold out the downswing and if we see an upside break above $10,350, the price could quickly recover and go above $10,450. This is all something that should be factored.

Gemini Exchange Launches in the UK

AlexH

Gemini has made a few powerful expansion moves over the last year and a half, cementing its place as one of the largest cryptocurrency exchanges in the world. Recently, this New York-headquartered crypto exchange owned by the Winklevoss twins has launched in the UK. This expansion comes as a result of the duo’s effort to cash in on the recent boom of crypto investments that occurred since the beginning of the pandemic.

Gemini Exchange and the Winklevoss Twins

The Winklevoss twins might be best known for their legal dispute with Mark Zuckerberg, which ended in a $65 million Facebook settlement. The two used a good portion of this money to invest in bitcoin and other cryptocurrency ventures. In 2015, Gemini Exchange went live, and in May 2016 it became the first licensed Ethereum exchange in the United States. In 2017, with the boom of cryptocurrencies, the Winklevoss twins became billionaires and continued their path down the cryptocurrency financial sector. Today, Gemini employs over 100 people.

What Can UK Crypto Users Expect with the Arrival of Gemini?

Gemini is only the second cryptocurrency added to the FCA’s register, a requirement created to better control activities in the cryptocurrency sector and battle against money laundering. The exchange has also been granted an EMI (Electronic Money Institution) license by the Financial Conduct Authority, allowing it to provide crypto exchange and custody services to institutions and individuals. Aside from this, Gemini has also received approval from the FCA as part of the authority’s Fifth Money Laundering Directive crypto-asset registration process.

With that in mind, both individual and institutional users will be able to use this exchange to store and trade cryptocurrencies in the UK, using their native currency, the British Pound. Residents can make GBP purchases on Gemini using debit cards or deposit money into their Gemini account using several different payment methods, including CHAPS, Faster Payments, and wire transfers.

Gemini exchange also filled for a license to operate in Ireland, which its founders intend to use if the current Brexit situation doesn’t allow the exchange to operate in the EU as well. According to Tyler Winklevoss, going live with their crypto exchange services in the UK is a big step towards further international expansion. As the UK is a global center of financial innovation, it will help advance their mission to empower individuals and organizations through crypto.

Just a reminder, a few months back, in May 2020, the exchange announced a partnership with Samsung, in which Samsung users could link their Samsung blockchain wallets to their Gemini accounts to transfer cryptocurrencies and have an overview of their balances. Currently, this cryptocurrency exchange operates in the UK, US, Canada, Hong Kong, South Korea, and Singapore.

Revolut Continues Its Expansion – Introduces Service in Australia

AlexH

According to their press statement from a few days ago, Revolut has started offering its cryptocurrency trading services to Australian residents. Members of the company’s premium Metal service will get first access, after which all other crypto traders can get started with the service. Continue reading to find out more details about Revolut’s latest expansion.

Revolut’s Rapid Expansion in 2020

In August of this year, Revolut made its first venture into the Australian market, introducing fiat-based currencies. As of writing this article, Australian customers can use Bitcoin, Litecoin, Ether, XRP, Stellar, and Bitcoin cash. Aside from this, the platform allows users to convert Australian dollars, as well as 26 other fiat currencies, into a cryptocurrency of their choice, directly through the native Revolut app.

During the first few days on the Australian market, Revolut already managed to garner significant attention. Its launch was highly anticipated, with over 30,000 Australians on the app’s waitlist, and 25,000 customers using the beta version. Australian customers who use Revolut can buy and sell up to six different digital assets while receiving real-time notifications on market price movements.

As a reminder, Revolut also expanded its services into the US in March of 2020. They obtained regulatory permission to operate in the US by partnering with Paxos, a New York-based trust company. Revolut’s services are available in 49 U.S. states, excluding Tennessee. After a successful push into the Australian market, the company now aims to expand further into the Asia-Pacific region by introducing its services in Japan and Singapore.

Unrelated to its expansion to all of these markets, it’s important to also mention that Revolut is suspending the ability to make crypto card payments in Europe, and won’t be introducing this option on any of the markets we mentioned above. The company’s representatives also mentioned that they are looking into the possibility of creating crypt-specific cards.

A Brief History of Revolut

Revolut is one of the most popular online trading services, with over 1 million users, and roughly 6,000 new registrations per day. It was founded in 2015 in the UK, as a platform offering financial services and banking products. In 2017, Revolut ventured into the cryptocurrency world, after securing $66 million in a funding round. They offer a mobile app, and their customer base covers mostly younger financial traders who operate on the crypto market.

In July of 2020, the company updated its terms of service, giving its users legal control over the cryptocurrency they operate with on the platform. This has been lauded as a significant decision, as previous to this update, Revolut conducted all cryptocurrency transactions on behalf However, the company still doesn’t allow users to transfer cryptocurrencies outside of the Revolut trading ecosystem.

Is a Significant Bitcoin Correction Imminent?

AlexH

Over the past few days, Bitcoin has experienced a significant dropoff and is now trading below a key fundamental level. The cryptocurrency had its largest pullback since May of this year. On September 4th, it tumbled to below $9.8k, with no sign of stopping. Many crypto analysts are predicting that this is a sign that Bitcoin may be facing a major price correction in the following weeks, if not days. But, is Bitcoin facing a possible death spiral? Here’s what we know.

Bitcoin in 2020

For the better part of this year, Bitcoin has been trading under the cost required by miners to produce it. This has led to the situation that the miners are better off straight buying and selling currencies on the market, instead of investing any effort into the production process.

With several big miners moving large sums of Bitcoin, many analysts saw this as a sign that the currency is facing a potential fall. This makes sense, since Bitcoin’s value is impacted by its participants selling and buying, and a large number of big transactions can have a significant impact on the currency’s value. 

For this reason, many people expected the aforementioned death spiral to happen during this time. However, the better half of 2020 has already passed, and the cryptocurrency handled the halving and got back to its steady growth, with no death spiral occurring during this period. What’s even more interesting is that some analysts are pointing to the fact that the increased Bitcoin transaction fees may have actually helped this currency stay afloat during this turbulent period.

Can we Expect Another Catastrophic Collapse?

If you don’t go by expert predictions, a valuable metric to look at is the network-to-transactions. In short, this ratio compares the currency’s price to the total value being transacted across its network.

The NVT has served as a good predictor of Bitcoin’s price drops and rises over the years. Every time NVT gets hit and turns to black, Bitcoin experiences a fall. If we take a closer look at the peaks and drops over the years, we can see that there have been four collapses since 2018:

  1. February 2018 – Bitcoin dropped a massive 70%, falling from $20,000 to $5800.
  2. December 2018 – The cryptocurrency lost another 50% of its value, falling to just $3200
  3. December 2019 – After a year of steady growth, Bitcoin again dropped significantly, this time to just under $7,000
  4. March 2020 – On March 12th, as a consequence of the global market crash, Bitcoin plummeted to $3,800, losing 62% of its value during this period.

With this in mind, we should mention that NVT recently got hit, which means that some type of significant Bitcoin drop is expected. When we average these collapses, we get to a 58% percent collapse in value across all four collapses.

If the next Bitcoin collapse follows this trend, it means that this cryptocurrency could fall back to just above $5200. That said, given the current political situation and health pandemic in the world, there are just too many factors for analysts to accurately predict just how high or low will Bitcoin’s next drop stop at. Is the recent NVT hit a sign that Bitcoin is facing another collapse? Or, maybe this time Bitcoin will ride through it and start a comeback?

Ethereum Reaches 2-Year High with No Signs of Stopping

AlexH

Ethereum continues its uptrend. It climbed up another 8%, breaking the man $400 barrier against the Dollar. It currently stands at a 2-year high of above $430, with analysts predicting that it is highly likely to continue reaching even higher values. After a relatively stable few sessions, Ethereum managed to surpass the $390 level against the US Dollar. Soon after, it settled significantly above the 100 hourly simple moving average at $432.

Some Analysts Predict a Surge Towards $600

According to Teddy Cleps, Ethereum could surge by another 50 percent by the end of 2020. He spotted Ethereum inching towards a price ceiling that historically prevented it from making further upside moves.  This level has proven to serve a great service before, during Ethereum’s correction back in 2018. He also said that if this crypto manages to break above the price ceiling, it could kickstart a new massive buying spree. If this happens, Ethereum could surge by as much as 50 percent.

With all of this in mind, many analysts are also wary of a potential DeFi bubble burst. It appears to be overblown against the possible valuation of the startups that it features. This can potentially lead to a new frenzy, similar to the one we saw in 2017, with the now notorious ICO frenzy. During that time, the price of Ethereum crashed dramatically, losing 94 percent of its value following the bubble burst.

So, what can holders do to avoid losing money in case of another burst? In truth, not much. The best way to avoid problems like these is to carefully follow the latest technical indicators. As of now, the main support is forming around the $400 level, the most recent breakout zone. The next major resistance to observe is at the $435 level, above which the crypto is likely to continue towards the $450 mark in the short term. If the currency manages to stay stable at the $420 level, it could start a new upswing above the $430 level.

Will There Be Any Dips Soon?

If the currency drops below the $420 support level, we could see it correct even further. If this happens, the first major level support is near $405. Its most recent jump in value was strongly supported by the massive growth of Ethereum-based stablecoin and decentralized finance tokens.

In addition to this, a few days back, Ethereum transactions shot through the roof due to record demand. And, after the collapse of Yam Finance, Ethereum transaction fees have dropped by as far as 60 percent. All of this goes to show that solutions for Ethereum and the entire market are still needed in the long run.

US Federal Reserve Researching Possibilities for a Digital Dollar

AlexH

A few days ago, Federal Reserve Board Governor Lael Brainard came out with a detailed description of the Fed’s research and plans in the potential development of a central bank digital currency, also known as a Digital Dollar. She said that the central bank has been conducting studies over the past few years to determine how a centralized digital currency might affect the current payments ecosystem, monetary policy, the banking sector, and overall financial stability. With that in mind, here’s what we know so far.

Lael Brainard’s Latest Notes

In the speech she held at the Federal Bank of San Francisco headquarters on August 13th, Brainard said that “Given the dollar’s important role, it’s essential that the Federal Reserve remains on the frontier of research and policy development regarding the U.S. central bank digital currency (CBDC).” She later continued by saying “As part of this research, central banks are exploring the potential innovative technologies to offer a digital equivalent for cash”.

In her speech, Brainard also addressed the ongoing situation from her perspective. She cited that the COVID-19 pandemic was one of the most significant issues that reinforced the need to create immediate and trusted access to funds. She said that the ongoing crisis is a dramatic reminder of the importance of a resilient and trusted payment infrastructure that is accessible to all Americans.

She also noted that recipients of stimulus funds spent these funds quickly, which indicates the need for urgent access to funds. “It was notable that after a sharp reduction in spending early in the COVID-19 crisis, many households increased their spending starting on the day they received emergency relief payments.”

Brainard said the existence of other private cryptocurrencies as well as CBDCs, only underscore the importance of addressing and evaluating the cryptocurrency market. “Digital currencies, including central bank digital currencies present opportunities but also risks associated with privacy, illicit activity, and financial stability. This prospect has intensified calls for CBDCs to maintain the sovereign currency as the anchor of the nation’s payment systems.”

Previous Experimentation with the Digital Dollar

The recent research plan for a digital dollar doesn’t exactly come out of the blue. The potential benefits of a digital dollar have been discussed multiple times in the past. Just last November, the Federal Reserve said that the US central bank is carefully analyzing all of the potential costs and benefits of such currency. During that period, the regulator was focused on analyzing the possible effects the digital dollar would have on user privacy and consumer protection.

While we don’t know how far exactly the Federal Reserve has gotten in its experimentation, the Federal Reserve is working with several researchers, including those from MIT, to build and test all of the hypothetical issues of this digital currency. The regulator also said that the code used in these experiments will be open-source at some point in the future, so the general public can also experiment with it.

Even the idea of a digital dollar that would be used to distribute emergency funds is not new. The US Congress has been thinking about this plan since at least March, as far as it is publicly known. With all of this said, no concrete steps have been taken to create a blockchain-based central bank digital currency in the country.