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Cryptocurrency price analysis: the next possible stop for bitcoin is $ 7030

RoboForex lead analyst Dmitry Gurkovsky talks about further possible scenarios of the price movement of bitcoin and several popular altcoins. The market continued to move in the framework of the negative scenario and at the moment the best that can happen is a correction before the next wave of decline. For Bitcoin, the lower boundary of the Triangle model will act as a strong area of resistance – until it is broken, […]

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RoboForex lead analyst Dmitry Gurkovsky talks about further possible scenarios of the price movement of bitcoin and several popular altcoins.

The market continued to move in the framework of the negative scenario and at the moment the best that can happen is a correction before the next wave of decline. For Bitcoin, the lower boundary of the Triangle model will be a strong area of resistance – until it is broken, you should not expect upward movement.

On the other hand, Ethereum and EOS look quite interesting for growth as part of the development of upstream models on the daily charts. Important support levels for them have not yet been broken, which leaves a chance for an upward movement.

Litecoin and Bitcoin Cash may begin to decline as part of reversal models that have been formed for a long time, but the market did not dare to work out such patterns.

Bitcoin

The leading cryptocurrency was still able to leave the Triangle model, however, the breakdown took place down instead of the expected rebound and the beginning of growth. At the moment, as the main option, we should expect an attempt to further refine the model down.

The first target of the fall may be the lower border of the rising channel at the level of $ 7030, after the breakdown of which the next support will be the area below $ 5720. A rebound from the resistance line on the RSI indicator speaks in favor of long-range downward movement. The indicator values broke through region 30, which indicates the presence of a strong bearish impulse. As a rule, a signal for growth should be considered only after a return above level 30.

BTC / USD , TradingView data

At the same time, one should not exclude attempts at correction with a test of the broken border of the model, and only after that – continued development of the downward movement. Cancellation of the option with a decrease here may be strong growth and a breakdown of the level of $ 10,995, which will indicate the return of strong buyers and a potential reversal in favor of an upward trend.

A technical analysis of smaller time periods also indicates the development of an early correction to the resistance level of $ 9190, where the lower boundary of the Triangle model is located. In favor of the correction, a test of the support area on the RSI indicator is in favor, a rebound from which we saw earlier.

Most likely, the test of the resistance level will not become a reversal for new growth, but will lead to a movement even lower – to the level of $ 7200. Cancellation of the negative scenario will be a strong growth and a breakdown of the upper border of the downward channel with fixing quotes above the level of $ 9800. Only in this case it is worth returning to the option with the continuation of the rise. In the meantime, the leading asset remains under strong pressure from the bears.

Ethereum

In the case of Ethereum, one should not exclude the possibility of the formation of a bullish “Wolfe Wave” model, which will indicate the potential for continued growth to the level of $ 280.60. The lower boundary of this model remained unbroken, which means that the chances of a rebound and upward movement remain. In favor of this rise, the test of the ascending trend line at RSI may be in favor. Earlier, we already observed a rebound in asset quotes from the level of $ 170 to $ 225. Cancellation of the positive option on the daily chart will be a breakdown of the level of $ 125. In this case, the target of the reduction may be the area of $ 75.

ETH / USD , TradingView data

On the 4-hour chart, quotes are also just testing the support area and the broken border of the Wedge model. Do not exclude an attempt to grow cryptocurrency from current levels. An additional signal in favor of such a movement is a rebound from the support line on the RSI. A confirmation of the rise here will be a breakdown of the resistance level and consolidation above $ 185.25. Cancellation of the option with growth will be a strong drop and a breakdown of the $ 145 area. With this development, we should expect a continued decline.

Litecoin

Litecoin quotes continued to move as part of a negative option with the development of the Head and Shoulder model. As you can see, the asset pushed off the resistance level and is currently testing the support area of about $ 55.

It is possible that we can see a correction to the broken border of the upward channel and a continued decline with a target of $ 40. However, a downward price structure around the $ 80 level potentially indicates a probable fall to $ 21.85.

LTC / USD , TradingView data

Cancellation of the scenario with a decrease will be made by strong growth and a breakdown of the level of $ 90, which will indicate the fixation of LTC / USD quotes above the upper border of the Ichimoku Kinko Hyo Indicator Cloud. In this case, we should expect a change in trend in favor of the upward trend and the continuation of the rise to the first target at $ 125.65. Pressure from sellers on the course of "digital silver" is currently maintained.

On the 4-hour chart, asset quotes rested against the lower border of the downward channel. As long as buyers manage to stay higher, there is a high probability of the development of a correction in the range of $ 65 – $ 70. Already from these levels we should expect a continued decline.

In favor of this option, a test of the broken trend line at RSI will come out. However, if the bears manage to gain a foothold under the lower boundary of the channel, this will be a signal in the direction of sales to targets in the range of $ 40 – $ 20, which can be achieved very quickly.

The cancellation of this scenario will be a breakdown of the upper boundary of the downward channel and the consolidation of Litecoin above the level of $ 80, which will indicate a potential continuation of growth to the first target at the level of $ 107.

Eos

The movement structure on the daily chart of EOS coincides with Ethereum. We are witnessing the formation of the ascending Wolfe Wave model. Quotes tested the lower boundary of the model, which indicates a potential rebound and the beginning of upward movement.

An additional signal in favor of such dynamics is the RSI trend line test. The goal of the upturn during the development of the upward model is an area of about $ 5.40. Cancellation of this option may be a fall and a breakdown of the support level with fixing quotes below $ 2.

EOS / USD , TradingView data

On the 4-hour chart, quotes are repelled from the support level, where the lower border of the downward channel is located. As a short-term trading idea, we should expect an attempt to grow to the first target at $ 4.30.

An additional signal here is a strong drop in RSI values. As you can see, earlier prices have already shown growth at the time of testing this area. Breakdown of the upper boundary of the downward channel and consolidation above the level of $ 4.30 will indicate the quotes go beyond it and lead to a full continuation of the rise. Cancellation of the positive option for EOS will be a breakdown of the $ 2.05 area, which will indicate an increase in the bearish trend.

Bitcoin cash

Bitcoin Cash quotes, which moved as part of the formation of the “Head and Shoulders” reversal pattern, can return to the test of the broken “Neck” line of this model and then continue the development of the downward movement. A test of the trend line at RSI also favors a likely correction.

BCH / USD , TradingView data

The next important area of support is the level of $ 177.05, a break of which will indicate a test area of $ 100.65. Cancellation of this option here will be a strong growth with the surf of the upper boundary of the channel and fixing quotes above the level of $ 355.95. In this case, the asset will have a chance to move up.

On the 4-hour chart, we also see strong pressure from sellers. The cryptoactive has left the limits of the Triangle model and is preparing for a correction with a test of the resistance level of $ 245.00 before the next wave of decline. In favor of this scenario, a breakdown of the trend line on the RSI appears, which, if the price returns to it, will act as resistance. Cancellation of this option may be a strong growth and the breakdown of the level of $ 320.00, in which case the growth targets will be the areas around the levels of $ 355.95 and $ 457.10.

Attention!
Forecasts of financial markets are the private opinion of their authors. Current analysis is not a guide to trade. RoboForex is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.

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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold

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Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?

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In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.

If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?

Cryptocurrency Staking in 2020

A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.

But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.

  • Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
  • Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.

Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?

To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.

Staking and cryptocrediting are not the same thing

Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.

Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.

Real ROI and Volatility

Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.

  • PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
  • Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.

Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.

Number of platforms available and conditions

Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.

PoS Coins

Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:

  • Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
  • Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.

Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.

Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on Gate.io – only 6.1%.

Stablecoins

This type of digital asset can be deposited on various lending platforms:

  • Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
  • Decentralized – Compound, Nuo, dYdX, Aave and others.

It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.

Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.

Risks: interest in the project

We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.

Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.

Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.

In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.

And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.

Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.

Output

Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.

Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .

If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.

As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.

Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard

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This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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