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BTC, ETH, ADA, SOL, THETA

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When the sentiment in the market turns bearish, any negative news, no matter how small, pulls the price down as traders panic sell. It did so after China’s social media giant Weibo banned a number of crypto-related accounts and raised fears that broader crackdown could emerge.

In other news, a note from Goldman Sachs said that their meetings with 25 chief investment officers of long-only and hedge funds revealed Bitcoin (BTC) as the least preferred asset to invest in.

Daily view of crypto market data. Source: Coin360

While the news can be negative in the short term, it is unlikely to change Bitcoin’s long-term history. As the price corrects, several institutional investors are likely to consider crypto investments to hedge their portfolio against the potential surge in inflation in the US.

From the point of view of most traders, the current decline in Bitcoin continues to be a buying opportunity in the longer term.

Let’s analyze the charts of the top 5 cryptocurrencies that could outperform in the next few days.

BTC / USDT

Bitcoin slid off the 20-day exponential moving average ($ 39,127) on June 3, but is finding support near the triangle’s trendline. This shows that bulls buy on dips and bears sell on rallies.

BTC / USDT daily chart. Source: TradingView

The next trend move is likely to begin after price leaves the triangle. If the bulls push and hold the price above the resistance level, the BTC / USDT pair could rise to the 50-day simple moving average ($ 47,198) and then to the pattern target at $ 52,622.90.

On the contrary, when the price goes down and falls below the triangle’s trendline, it indicates that supply is exceeding demand. This could result in a drop into the $ 30,000-28,000 support zone.

If this zone breaks, sales could intensify as several traders who recently bought could abandon their positions. That could push the price down to $ 20,000.

BTC / USDT 4-hour chart. Source: TradingView

The 4-hour chart’s moving averages have flattened out and the relative strength index (RSI) is hovering around 40-60, indicating a balance between buyers and sellers.

However, this state of uncertainty is unlikely to last long and the price is likely to fall above or below the triangle in the next few days. If the price breaks out and holds above the triangle, it suggests that the setup was acting as a reversal pattern.

Conversely, if the price falls below the triangle, it suggests that the current consolidation was a temporary halt to a strong downtrend. It is difficult to predict the direction of the breakout, so traders can wait for the breakout to occur before considering new positions.

ETH / USDT

Ether (ETH) snapped off the 50-day SMA ($ 2.908) on June 4th and re-entered the symmetrical triangle. On the upside, however, the bulls haven’t given way much, indicating strong buying near $ 2,550.

ETH / USDT daily chart. Source: TradingView

If buyers push price above the resistance line of the triangle, the ETH / USDT pair could challenge the 50-day SMA again. A breakout and close above this resistance could open the way for a move to the 61.8% Fibonacci retracement level at $ 3,362.72.

Contrary to this assumption, if the price again deviates from the 50-day SMA, this suggests that the bears will be aggressively defending the resistance. A break below $ 2,550 could push the price below the triangle’s support line. A break below the triangle is the first sign that the bears are back in the driver’s seat.

ETH / USDT 4-hour chart. Source: TradingView

The 4 hour chart shows the formation of an ascending triangle pattern that completes on a breakout and closes above $ 2,906. If so, the pair could climb to $ 3,600 and then to the pattern target at $ 4,083.26.

This bullish view will be invalidated if price goes down and falls below the trend line of the triangle. The bears will then attempt to push the price down to $ 2,200 and then to the critical support at $ 1,728.74.

ADA / USDT

Cardano (ADA) has been stuck in a wide range between $ 1.94 and $ 1 for the past few days. The altcoin slid down from the resistance of the range on June 4th and fell to the moving averages.

ADA / USDT daily chart. Source: TradingView

The bulls are currently trying to defend the zone between the 20-day EMA ($ 1.66) and the 50-day SMA ($ 1.55). If the price rebounds from current levels, it suggests that sentiment will turn positive and traders will buy the dips to the moving averages.

A breakout and close above $ 1.94 (USD) will indicate the bulls are back in the driver’s seat. If the price holds above this level, the ADA / USDT pair could retest the all-time high at $ 2.47. A break above this resistance indicates the beginning of the next leg of the uptrend.

If the pair turns down and breaks below the 50-day SMA, this positive view will be invalidated. The bears will then attempt to push the price into the USD 1.33 to USD 1.22 support zone.

ADA / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows the formation of an ascending triangle pattern that completes on a breakout and closes above $ 1.94. This bullish setup has a target target of $ 2.88. However, it is unlikely to hit the target straight away as the bears could build stiff resistance at the current all-time high of $ 2.47.

The 20-EMA has started falling and the RSI is just below the midpoint, indicating a possible decline on the triangle’s trendline. Breaking below this support will void the bullish setup and this may cause it to fall to $ 1.36 and then to $ 1.

SOL / USDT

The bears are trying to stop Solana’s (SOL) relief rally at the 61.8% Fibonacci retracement level at $ 43.38. However, sellers were unable to bring the price below the 20-day EMA ($ 36.39), suggesting that sentiment has turned positive.

Cointelegraph Markets Pro’s VORTECS ™ data began to spot a bullish outlook for SOL on June 1 before the rally picked up pace.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, current price movements and Twitter activity.

VORTECS ™ Score (green) vs. SOL price. Source: Cointelegraph Markets Pro

As can be seen from the chart above, the VORTECS ™ Score for SOL turned green on June 1st when the price was close to $ 32.10.

The VORTECS ™ Score has remained consistently in the green since then and the price of SOL has risen to $ 43.33 today, up 35% in five days. This shows how the VORTECS ™ Score gave an early indication of a countertrend rally when other instruments would have been bearish.

SOL / USDT daily chart. Source: TradingView

The SOL / USDT pair rallied from the 20-day EMA on June 4th and has risen from the 50-day SMA ($ 39.42) today. This suggests the bulls are not waiting for a deeper correction to buy.

When buyers push the price above $ 43.38, it indicates that the downtrend is over. The pair could then climb to the 78.6% retracement level at $ 49.97 and then to the all-time high at $ 58.38. The 20-day EMA has started rising and the RSI is in positive territory, suggesting that buyers have the upper hand.

This positive view will be invalidated if the price turns down and falls below the trend line. The pair could then fall to $ 25.58 and then to $ 21 later.

SOL / USDT 4 hour chart. Source: TradingView

The 4 hour chart’s moving averages have risen and the RSI is trading in positive territory, suggesting that the bulls are making a comeback. The upside move could gain momentum if buyers lift the price above $ 43.38.

Conversely, if the price falls and breaks the 20 EMA, it suggests that supply is outstripping demand. The pair could then fall to the 50-SMA and then the trendline. A break below the trendline indicates that the bears are back in the game.

THETA / USDT

THETA trades on a descending channel. The bulls attempted to push and hold the price above the resistance line of the channel on June 4th and 5th but failed. This suggests that the bears are aggressively defending this resistance.

THETA / USDT daily chart. Source: TradingView

However, the 20-day EMA ($ 8.19) has started to move higher and the RSI is in positive territory, suggesting that the bulls have a slight advantage. If the THETA / USDT pair rebounds from the 20-day EMA, buyers will make another attempt to push the price above the channel.

If they are successful, it suggests that the downtrend may be over. The pair could then start an upward move to $ 13 and later to the all-time high of $ 15.88. This bullish view will be invalidated if the bears sink and hold the price below the 20-day EMA. Such a move could result in a drop to $ 6.

THETA / USDT 4-hour chart. Source: TradingView

The 4 hour chart shows that the pair has turned down twice from the resistance line of the channel. However, the bears have been unable to bring the price down and hold below the 20 EMA, suggesting lower demand.

If the pair recovers from current levels, the bulls will make another attempt to push the price above the channel. If they succeed, the next stage of the uptrend can begin.

However, if the price falls below the 20-EMA, the pair could slide to the 50-SMA. A break below this support indicates the beginning of a deeper correction.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, so you should do your own research when making a decision.

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Former US Treasury Secretary Larry Summers: Cryptocurrency Will ‘Do Better Regulated’ – Regulation Bitcoin News

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Former US Treasury Secretary and World Bank chief economist Larry Summers says cryptocurrencies will be better regulated rather than treated as a libertarian paradise.

Larry Summers sees crypto benefiting from strong regulation

Lawrence Summers, who served as Treasury Secretary in the Clinton administration and director of the National Economic Council of the White House in the Obama administration, spoke about regulating cryptocurrencies in an interview with Bloomberg on Friday. Summers, a former chief economist at the World Bank, is currently President Emeritus of Harvard University.

He was asked why regulators around the world are “deeply skeptical” about cryptocurrencies. China, for example, is taking action against crypto activities. Summers began by stating that the word “crypto” implied a “desire for secrecy in relation to large financial sums” and stated:

When large sums of money happen in secret, there is a risk of money laundering, the risk of assisting various types of criminal activity, and the risk of innocent people being ripped off.

“The truth is, if we didn’t regulate flight safety, we wouldn’t have a viable aircraft industry,” he continued. “We wouldn’t have the transportation system we would have if we didn’t regulate car safety.”

He added that the blockchain-based payments industry “will be more solidly regulated rather than trying to be some kind of libertarian paradise,” noting:

I think the crypto community needs to recognize this and cooperate with governments, and when they do. I think this innovation can be one of the most important innovations of this time.

The former chief economist at the IMF pointed out that some people believe in the idea that cryptocurrency will be “some kind of libertarian paradise where we won’t be able to enforce banking rules like knowing your customers”. [KYC]where we can move money freely and avoid taxes. “

Summers said, “I think it’s a realization that all industries need to arrive with systemic importance,” added:

It’s not entirely dissimilar to the discussion about big tech companies. You need a regulatory framework. Not only do they need it to protect their consumers, they need it for their own protection.

He concluded by saying, “If we didn’t have a strong SEC, we wouldn’t have the New York Stock Exchange as the center of the world stock market,” and emphasized, “Even if people don’t like the rules of the time.”

What do you think of Larry Summers’ comments? Let us know in the comment section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of Liability: This article is for informational purposes only. It is not a direct offer or solicitation to make an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Coal to cryptocurrency: An answer to grid volatility?

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A Midwestern utility company is testing a new tool to cope with variability on the web: mining bitcoins.

St. Louis-based Ameren Missouri, the state’s largest utility company with 1.2 million customers, began mining cryptocurrency in April. When demand is low and electricity is cheap, computers in a 20-foot metal container on site at the Portage Des Sioux coal-fired power station in Ameren race to “mint” a digital coin by looping through complex mathematical calculations.

Ameren Missouri executives see the initiative as research and development rather than a speculative bet on Bitcoin, the price of which has fluctuated sharply this year. It is seen as a pilot project designed to help meet electricity demand with an intermittent energy supply as more and more wind and solar projects go online.

Electric utilities around the world are increasingly tied to the energy-hungry cryptocurrency industry. In the US, however, Ameren is unique among investor-owned utility companies as it is directly involved in mining bitcoins.

Critics argue that the industry is a lifeline for aging fossil fuel power plants at a time when the deepening climate crisis calls for a quick switch to carbon-free energy sources (Energywire, June 24). The fact that Ameren mines bitcoins on-site at a giant coal-fired power plant – one of four that encircle the St. Louis metropolitan area – will almost certainly be scrutinized.

Ameren Missouri, based in St. Louis, says the effort could help reduce its carbon footprint. The utility has to respond to more fluctuating wind and solar power on the regional grid and is looking for ways to avoid having its power plants ramp up and down to meet demand as this is inefficient and can increase emissions.

Warren Wood, vice president of regulatory and legislative affairs for the utility, likened it to using cruise control on the freeway to driving in stop-and-go traffic in the city.

“We have pretty dramatic load changes from minute to minute, sometimes from second to second,” Wood said in an interview. “We need something that can ramp up and down really quickly to be a really effective tool for balancing.”

He is quick to point out that the pilot is initially funded by the utility shareholders and is free to Missouri fee payers.

Ameren initially tried to include $ 8,000 in electricity bills for 309,000 kilowatt hours of bitcoin mining-related energy use in its fuel reimbursement formula, but withdrew the application to the Public Service Commission after the state’s consumer advocate had questioned him earlier this year.

“If Ameren Missouri wants to get into speculative commodities like virtual currencies, it should be done as an unregulated service where installment payers are not faced with their economics,” said Geoff Marke, chief economist for the Missouri Office of the Public Counsel, said on a file . “This endeavor goes beyond the scope of intended regulation of utility companies and, if allowed, creates a slippery slope that could ask fee payers to provide capital for virtually anything.”

However, executives said the initiative could benefit customers if the concept works. And they are encouraged after the first four months.

The pilot has also piqued the interest of Missouri’s top energy regulator, Public Services Commission Chairman Ryan Silvey, who said he was interested in convening a technical workshop on the matter before he even learned about the Ameren project.

Silvey, a former Republican senator, told E&E News that he has a personal interest in digital currency. And a recent piece of news about an aging hydropower dam in New York state being used to mine bitcoins made him think further about the potential of cryptocurrency as a network asset.

Silvey said it was appropriate for Ameren to take all risk of the project at this point as it has not been reviewed in front of the PSC and other parties. But Missouri law allows utility companies to run pilot programs and look for alternative sources of income that could be used to lower tariffs.

“When a company offers us a program that presents little or no risk for consumers to benefit from, I find it exciting,” said Silvey.

But can Bitcoin mining bring value to the web?

Joshua Rhodes, a research fellow at the Webber Energy Group at the University of Texas at Austin, has researched the impact of Bitcoin mining in Texas and changed his mind about the potential benefits. Texas has become a global hub for cryptocurrency mining after China announced a series of restrictions on digital currencies in May, some of which are aimed at curbing carbon emissions.

“I think that [miners] can add great value, especially how fast they can move up and down, ”said Rhodes. “They can move up and down faster than some traditional generators, which is of value … especially if they are able to monetize the crypto assets.”

According to Ameren, the mining operations at the Sioux plant initially only consume half a megawatt and, depending on grid conditions, can be started up within a minute and shut down again within 20 seconds.

“We talk for a minute or less to turn it on or off,” said Wood. “You really have a good mechanism to try to get a better balance of the grid between your generating resources and the load.”

Questions about coal

Bitcoin mining has been widely criticized for its enormous power consumption – more than 121 terawatt hours worldwide – an amount that exceeds the power consumption of countries like the Netherlands and Argentina, according to the Cambridge Center for Alternative Finance.

But industry defenders, including Twitter co-founder Jack Dorsey, claim that bitcoin mining can advance the energy transition and enable the development of renewable energy and energy storage by helping break down barriers to their disruption and lack of transmission are connected.

“Bitcoin miners as a flexible charging option could potentially help solve much of these disruption and congestion problems so that the grids can use significantly more renewable energy,” said Dorsey’s other company Square and shareholder Ark Invest in an April white paper.

Among the skeptics is Andy Knott, deputy regional director of the Sierra Club’s Beyond Coal campaign.

The Sierra Club recently began research into bitcoin mining and its impact on the power grid after news reports of bitcoin mining operations powered by coal waste, natural gas and nuclear power plants, Knott said.

These projects include a cryptocurrency miner in northwest Pennsylvania that plans to run its operations on waste coal.

“It clearly generates electricity demand, and what will it cover besides the existing electricity generation on the grid?” Said Knott.

However, Ameren officials said just because the pilot is physically housed at the Sioux plant doesn’t mean bitcoin mining is coal-tied. The aim of the project is initially to validate the concept.

Alex Rojas, director of distributed technologies at Ameren, said that because the mining operation is modular, it can be relocated to other locations on the utility’s grid, be it an underutilized substation or a wind or solar farm.

“Renewable energies that cannot be shipped, such as wind and solar energy, urgently need this capability,” he said. “Putting this technology in one place would be of great help.”

Rhodes didn’t reject the idea that mining bitcoins to balance electricity supply and demand can be a net benefit in terms of carbon emissions. But he said it depends on how this affects the shipping of different power plants.

“It can have a positive impact on emissions when operated properly,” he said. “It can also increase emissions when it doesn’t.”

Ameren’s executives did not specify how long the pilot would last or how its success would be defined.

However, Rojas, who leads Ameren’s research and development work, said the results so far are promising and he sees the potential to use bitcoin mining modules for grid balancing on the same scale as energy storage in California with 20 to 80 megawatts per location .

“Something similar could happen with that,” he said. “It’s that scalable.”

For now, the utility is content with keeping the project running unchanged.

So far, Ameren has mined about 20 “coins” and produces a new one about every 15 days.

The utility said it doesn’t care about the volatility of Bitcoin, which peaked above $ 63,000 in April and has hovered around $ 44,000 in recent weeks. That is still over 300% more than last year.

Rather, it sees the mining process itself as the primary value that is being created and bitcoins as a by-product.

“The goal is not to mine crypto,” said Wood. “It’s really running a data center that happens to be producing crypto.”

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US Senator Calls On SEC Chairman To Provide Regulatory Clarity On Cryptocurrencies – Regulation Bitcoin News

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A US senator has asked the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, to provide clear guidance on cryptocurrency regulation. The Senator stated that in many enforcement actions, “the SEC has failed to identify the securities involved or the reasons for their status as securities, which would have provided much-needed public regulatory clarity.”

US Senator wants the SEC to provide clear guidelines on crypto regulation

Senator Pat Toomey, ranked member of the U.S. Senate Committee on Banking, Housing, and Urban Development, wrote a letter to SEC Chairman Gary Gensler on Friday regarding the regulation of cryptocurrencies.

His letter followed Gensler’s testimony before the Senate Banking Committee last week. Toomey began:

I’m writing to address the concerns I raised at the hearing about the need for regulatory clarity around emerging technologies such as cryptocurrencies, including stablecoins.

“In order for investors to benefit from a fair and competitive market, regulators must proactively provide rules on how to get to industry,” the Senator said that the SEC “has instead adopted a strategy of regulation through enforcement in this area.” To date, the commission has launched more than 75 enforcement actions against the crypto industry, fines and penalties totaling more than $ 2.5 billion against crypto companies and individuals.

At the Senate hearing, Gensler extolled “the SEC’s success in pursuing crypto-related enforcement measures.” Toomey noted, however, that “in many of these enforcement actions, the SEC failed to identify the securities involved or the reasons for their status as securities, which would have provided much-needed public regulatory clarity.”

SEC Commissioner Hester Peirce is also concerned about the SEC’s approach to crypto regulation. She criticized her own agency in August for taking an enforcement-oriented approach to crypto regulation.

The Senator from Pennsylvania noted that the SEC’s approach was tied to Gensler’s belief that “the likelihood is pretty slim” that a given cryptocurrency platform has no securities. For example, Gensler told Senator Elizabeth Warren at the hearing that the Nasdaq-listed crypto exchange Coinbase (Nasdaq: COIN) could have dozens of tokens, which could be securities.

Recently, Coinbase was forced to abandon its plan to launch a loan product after the SEC threatened legal action and the company alleged it had received no explanation from the regulator. In the meantime, the security guard is in an ongoing proceeding with Ripple Labs and its executives as to whether XRP is a security.

Senator Toomey emphasized:

The SEC has a responsibility to do more than just provide probabilistic estimates.

The Senator concluded his letter with a list of questions for Gensler to answer for additional guidance on crypto regulation.

What do you think of Senator Toomey asking SEC Chairman Gensler to provide clear guidance on crypto regulation? Let us know in the comment section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of Liability: This article is for informational purposes only. It is not a direct offer or solicitation to make an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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