The price reached a high of nearly $4200 on Feb 24.
A flash crash caused it to drop to nearly $3670.
It has been struggling to break out above $3900 since.
The price is moving inside a horizontal channel.
There is short-term bearish divergence developing.
The price made a rapid upward move on Mar 5.
The Resistance Line
The price of BTC on Bittrex is analyzed in 1-Hour intervals from Feb 26 to Mar 6.
The price of BTC reached a high of nearly $4200 on Feb 24. A flash crash caused it to drop sharply to nearly $3670.
The price rebounded to a level close $3870 on Feb 25. The price reached the same level several times. The horizontal resistance line is created by tracing these successive highs.
The validity of the resistance line is increased by the number of times the line is touched. The line was touched four times. The dates in which the line was touched were:
A resistance line can act as a ceiling to price, preventing movement above a certain level. However, a breakout above can initiate a rapid upward movement.
After the crash on Feb 24, the price made a bottom at close to $3670. It revisited the same level three more times until Mar 6.
The horizontal support line is created by connecting the successive lows. The line was touched four times. The breakdowns by a wick can be ignored in a volatile market.
The resistance and support lines combine to create a horizontal channel. If price moves outside this channel for a significant period, new resistance and support lines may develop. The dates in which the line was touched were:
Rapid Upward Move
The price of BTC traded inside the channel without significant fluctuations from Feb 24 to Mar 5.
On Mar 5 it initiated an upward move that took it to $3870. The move occurred within 11 hours and represented an increase of 4.5% The magnitude and speed of the increase suggest that the downward movement may be over and further increases in price may be forthcoming.
Looking Out For Divergence
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
Since the beginning of the upward move on Mar 5, the price has been trading at around the same level since. In contrast, the MACD and RSI have made successive lower highs.
This is called bearish divergence. It often precedes drops in price. The use of divergence in the RSI and the MACD combined with the use of support/resistance lines can be effective in predicting a reversal.
Predictions can be especially precise if there is bearish divergence in a resistance line and both indicators are in agreement.
Given the above information, the price of BTC may trade inside the channel for a period of time before ultimately breaking out.
How long do you think the price of BTC will trade inside the horizontal channel before it breaks out? Let us know in the comments below, and check our long-term Bitcoin Price Predictions here:
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. Those seeking financial advice should consult with a certified financial professional.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Jack Dorsey, CEO of both Twitter and Square as well as a big believer in Bitcoin (BTC), recently appeared on the Tales from the Crypt podcast where he spoke to Marty Bent about all things Bitcoin and his involvement in this potentially revolutionary industry.
Twitter’s Jack Dorsey Buying $10,000 Worth of BTC a Week?
During the podcast, Dorsey reiterated a number of his points from previous interviews, but also delved into how he’s participating in the crypto industry and accumulating Bitcoin.
Dorsey mentioned that Square’s Cash App, a popular mobile payments service, is the only public company trying to bring Bitcoin to the masses. The popular mobile payments application allows people to easily buy Bitcoin and plans to integrate the Bitcoin lightning network in the future.
Adding to this, Dorsey said that Cash App’s team has been working with the Securities and Exchange Commission (SEC) in an effort to bring the application closer to users and pave the way for other…
Though the potential of blockchain technology has captivated the logistics and transportation industry, it has remained a technology that has struggled to make it past the research desks across several niches. Then again, the maritime market has shown a positive reception to blockchain, with large container lines and related startups looking to create blockchain platforms – primarily for container track-and-trace within its supply chain.
Blockchain Labs for Open Collaboration (BLOC) is a startup that is working diligently to provide blockchain-based solutions across different verticals, with the primary goal of bridging the gap between the digital and the physical world. BLOC recently collaborated with mining company BHP, Japanese shipping company NYK, and biofuel company GoodFuels, to deliver sustainable biofuel to the BHP-chartered, NYK-owned bulk carrier – all via BLOC’s blockchain fuels assurance platform.
“We are funded by Lloyd’s Register Foundation to build blockchain prototypes in the industry within the area of risk and safety. Together with the industry, we look to build consortiums in each of the areas we are focusing on,” said Deanna MacDonald, the CEO of BLOC. “Our first prototype is in bunker tracing. We are essentially looking into how we can provide quality and quantity metric associated with bunker deliveries before 2020, and also help with traceability and transparency within the supply chain.”
The year 2020 is crucial, because next year is when the International Maritime Organization (IMO) sulfur-cap regulation comes into effect. The rule states that the bunker fuel that container lines use must not have a sulfur content that exceeds 0.5 percent – a number that is seven-fold less than the current limit. Biofuel produced by GoodFuels is one of the many ways for container lines to navigate IMO 2020 limits, because the sulfur content in biofuel is under the authorized limit.
The top 24-hour
gainer in marketcap for the top 100 coins is ABBC Coin
(ABBC) rising 28.78% while the top loser is Holo (HOT)
About BitPrime: NZ
owned, operated, and a registered financial service
provider, BitPrime is the country’s most trusted
cryptocurrency retailer. BitPrime differs from traditional
exchanges and brokerages as you buy directly from their
reserves. For more information, visit
Price is calculated by the volume weighted
average of all prices reported at each market (source:
coinmarketcap). The above references an opinion and is
for informational purposes only. Do not take this as
personalised financial or investment
Lighting products wholesaler H&M Distributors Inc. is betting that accepting cryptocurrency will increase international sales by removing many of the cost and time barriers that make cross-border sales difficult.
For sellers doing a lot of cross-border business, accepting crypto currency can add value to their operation.
Accepting cryptocurrency allows Henderson, Nevada-based H&M to eliminate the banking fees associated with cross-border sales, such as for currency conversion and remittance. It also enables the company to settle international purchases on a same-day basis, which is not guaranteed with bank remittances between B2B buyers and sellers, as the cryptocurrencies H&M is accepting settle transactions in minutes.
Removing those barriers should make doing business with H&M more attractive to international B2B buyers, CEO Herb Needham says.
Converting crypto payments
“Accepting cryptocurrency payments allows us to share our expertise with more clients by removing many of the barriers that made it difficult to sell internationally,” Needham says. “What sold us [on accepting cryptocurrency] was the settlement system, which allows us to convert crypto payments to a U.S. dollar equivalent right away.”
Krista Tedder, director of payments, Javelin Strategy & Research
H&M is accepting multiple cryptocurrencies including Bitcoin, Bitcoin Diamond, Bitcoin Cash, Dash, Ethereum, Litecoin and Zcoin. Payments will be processed through Chimpion, a cryptocurrency ecommerce platform.
“Cross-border invoicing can be painful for B2B sellers because, in some cases, it can take weeks to get paid,” says Krista Tedder, head of payments for Javelin Strategy & Research. “For sellers doing a lot of cross-border business, accepting crypto currency can add value to their operation.”
On the acceptance side, H&M expects to pay less than one cent per transaction and there is no risk of a chargeback, since cryptocurrency transactions are validated on each currency’s blockchain, the immutable up-to-the minute internet-based ledger that verifies all transactions made with a cryptocurrency. Once a transaction is officially added to the blockchain, it cannot be reversed or modified, which eliminates the risk of a chargeback, H&M says. H&M expects to pass the savings from lower transaction fees and reduced chargebacks to its customers.
The risk of losing value
Lower acceptance costs and faster settlement times aside, not many B2B sellers, or B2C merchants for that matter, are known to accept cryptocurrency. And there’s a laundry list of reasons why. The biggest reason has to do with cryptocurrency’s ambiguity as a mainstream payment option.
The United States government does not recognize cryptocurrency as a fiat currency. Instead, it classifies cryptocurrency as an investment. Subsequently, the currency is heavily traded, which can lead to volatility in its value at any given time. While Litecoin transactions can be processed in 1 minute and 90 seconds, Ethereum transactions can take 6-7 minutes to process and Bitcoin transactions 15 minutes or longer. In comparison, a credit card transaction can settle in seconds.
Such settlement times—though typically faster than bank remittances between B2B buyers and sellers—put cryptocurrency at risk of losing value between the time it is spent and the transaction settled. Without a guarantee from the transaction processor to absorb any price volatility that goes along with cryptocurrency transactions or immediate conversion into dollars, price volatility is a risk for B2B sellers.
“If a merchant sits on a cryptocurrency payment too long, there is a risk the value will fluctuate before settlement,” says Tedder. “Accepting crypto for cross-border sales can be a plus, but there are risks. For most businesses, there is very little value in accepting this payment form.”
Peter Lucas is a Highland Park, Illinois-based freelance writer covering business and technology.
Sign up for a complimentary subscription to B2BecNews, published 4x/week, covering technology and business trends in the growing B2B ecommerce industry. B2BecNews is published by Vertical Web Media LLC, which also publishes DigitalCommerce360.com, Internet Retailer and Internet Health Management. Contact B2BecNews editor Paul Demery at email@example.com.
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Cryptos are consolidating the gains seen on Tuesday.
The technical picture has improved and another leg higher may be seen now.
Here are the levels to watch according to the Confluence Detector.
Cryptocurrencies took advantage of a technical upside window and moved to higher ground on Tuesday. They then got stuck, but this is not necessarily a bad thing. Apparently, this trading in the trenches allowed for the much-needed consolidation and another upside move may be in the works.
Yet not all digital coins were born equal and there are differences between the assets in both the strength of the technical clusters and the targets.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD enjoys support at $3,780
Bitcoin, the grandaddy of cryptocurrencies, enjoys support at $3,780 where we see a dense cluster of lines including the Fibonacci 23.6% one-week, the Simple Moving Average 10-4h, the SMA 10-1d, the the SMA 5-1d, the SMA 50-1h, the Bollinger Band 4h-Middle, the SMA 200-15m, and the SMA 100-1h.
If BTC/USD falls below the line, it may find a cushion at $3,573 where we see the Fibonacci 61.8% one-month meet last week’s low.
Looking up, substantial resistance awaits at $3,877 which is the convergence of the Fibonacci 38.2% one-week, the BB 15min-Upper, and the Fibonacci 38.2% one-month.
The upside target is $4,005 which is the confluence of the Pivot Point one-day R2, the Fibonacci 61.8% one-week, and the Fibonacci 23.6% one-month.
ETH/USD is supported twice
Ethereum sits just above support at $137.43. At the time of writing, the area includes the Fibonacci 23.6% one-week, the BB 1d-Middle, the BB 1h-Middle, and the previous 4h low.
The second support line for Vitalik Buterin’s brainchild is at $135.12 where the SMA 10-1d, the SMA 200-1h, and the SMA 50-4h converge.
ETH/USD has an upside target at $142.50 where the confluence of the Fibonacci 38.2% one-month, the Pivot Point one-day R1 and the Fibonacci 38.2% one-week awaits.
XRP/USD is also OK, but things are more complicated
Ripple has more support than resistance, like the other digital coins, but resistance is close and not negligible. At $0.3176, the BB 15min-Middle, the Fibonacci 38.2% one-week, and the Fibonacci 23.6% converge.
Support is close $0.3140 where the previous 4h-low, the SMA 5-1d, the Fibonacci 38.2% one-day, and the BB 15-min Lower meet to create a minefield for the pair.
XRP/USD has an upside target of $0.3360 which is where the Fibonacci 23.6% one-month meets the price.
Lower support is at $0.3123 that is a juncture consisting of the SMA 50-1h, the Fibonacci 61.8% one-month, and the BB 4h-Middle.
There is increasing hype and speculation regarding a theoretical Facebook Coin, which may become a reality in the first half of 2019. Indeed, Facebook has been ramping up the size of its blockchain team to about 50 employees.
The blockchain team is working in a building where regular Facebook employees do not have access in order to maintain secrecy, but information has been supposedly leaked to the New York Times.
Apparently, the focus of this team is to create a cryptocurrency for WhatsApp, a popular online phone app owned by Facebook. Further, this cryptocurrency is apparently so far along that Facebook is in talks with cryptocurrency exchanges to coordinate the launch. But cryptocurrency enthusiasts, traders, and investors must be aware of the specifications of Facebook Coin before getting excited since Facebook Coin is nothing like Bitcoin (BTC).
Facebook to Launch Stablecoin That Could Compete With Fiat Payment Networks
It appears that Facebook Coin will be another stablecoin pegged to fiat currency, much like Tether (USDT) and USD Coin (USDC). Perhaps the only unique thing about Facebook Coin versus a regular stablecoin is that it could be backed by a basket of fiat currencies, all held in Facebook bank accounts.
If this is true, certainly Facebook Coin could be quite competitive with the rest of the $2-3 billion stablecoin market. The biggest stablecoin, Tether (USDT), has had major trouble in the recent past maintaining a bank account. This caused Tether (USDT) to decline as much as 10 percent below the value of a U.S. dollar, tarnishing its reputation. Presumably, Facebook Coin will never have problems with its bank account. That said, USD Coin (USDC), which is operated by Circle and Coinbase, probably will not have banking problems either.
Since Facebook Coin would be a stablecoin, it will not be possible to invest in it. This is quite different from Bitcoin (BTC) and most other cryptocurrencies, which have fluctuating prices, making investing and day trading possible.
If Facebook were to launch a cryptocurrency that was not a stablecoin, it could be one of the biggest initial coin offerings (ICOs) of all time. It is curious that Facebook is not going this route since it would likely make billions of dollars. However, Facebook’s stock has a market cap of $463 billion as of this writing, 3.56 times more than the total crypto market cap of $130 billion.
So Facebook is perhaps not interested in the billions of dollars it could make on an ICO. It appears Facebook is most interested in creating its own payment network independent of Visa and PayPal.
With Facebook’s immense user base, such as payment network could be highly competitive with PayPal, Visa, and all other fiat payment networks. Choosing to use a stablecoin rather than a regular cryptocurrency for this payment network would eliminate market volatility, making it easier for users to treat Facebook Coin as money and not worry about selling it as soon as they receive it.
Essentially, instead of reaping low hanging fruit with an ICO, Facebook is probably launching a stablecoin so it can build a world-class payment network, which may be much more profitable than an ICO in the long term.
Further, this Facebook payment network will be unique out of all the other big name fiat payment networks since it will use blockchain technology.
Is Facebook Coin a Scheme to Gather User’s Identification Information?
The most dramatic difference between Bitcoin (BTC) and Facebook Coin is that the latter will require a complete identity verification procedure. Bitcoin (BTC) does not require any identity verification. Should Facebook Coin fail to follow know your customer (KYC) and anti-money laundering (AML) laws, it would be breaking the law. Bitcoin (BTC) circumvents these laws since it is totally decentralized and not operated by any company or entity.
There is some negative speculation that Facebook’s long term goal with Facebook Coin is to collect a massive amount of customer identification information. Facebook does not charge money for using its services, and it has been said that the customers of Facebook, WhatsApp, and Instagram are the product. Indeed, Facebook was recently embroiled in the Cambridge Analytica data scandal, where data from 87 million users was harvested for political purposes. The sentiment that Facebook Coin is another chapter in Facebook’s user privacy breaches is just speculation and opinion, however.
Overall, the stablecoin being launched by Facebook may pave the way for billions of people worldwide to use a blockchain payment network instead of Visa or PayPal. However, users of this new payment network need to realize that Facebook’s cryptocurrency very different from Bitcoin (BTC) since it will not be suitable for investment, it will not be decentralized, and it will not be anonymous.
An Israel Securities Authority (ISA) committee tasked with examining the regulation of crypto coin offerings has submitted its final recommendations today, March 6. They include the option of creating a dedicated platform for trading digital assets.
Also Read: In the Daily: Opera Browser, EY Tax Tool, Elliptic, Cryptopia Exchange
Regulating Coin Offerings in Israel
The Committee for the Examination and Regulation of the Issuance of Cryptographic Coins was established in August 2017 to consider the applicability of local securities law to initial coin offerings (ICOs). The committee was asked to study and characterize these projects, prepare a comparative review of the law in various countries around the world, and recommend a regulatory policy outline in areas related to the securities law. This was supposed to be done while balancing the encouragement of technological innovation with the obligation to safeguard the interest of the investing public.
In March 2018, the committee published an interim report for public comment, and has since held a series of meetings with industry and academic leaders to clarify the issues that arose. The final report noted that since the publication of the interim report, many changes have taken place in the field. The most significant trend in this context is the significant decline of ICOs compared to early 2018. It explained that raising funds in this field in Western markets is currently carried out mainly by sophisticated investors and by issuing crypto assets included in the definition of Security Token Offerings (STOs) in accordance with relevant regulations.
The final report offers a few main recommendations. The first is applying securities law to the issuance of crypto assets, while adapting the suitability of disclosure requirements to the unique characteristics of the activities of these projects. The second recommendation is the use of a regulatory sandbox framework in order for the ISA to acquire experience in the field and to accompany entrepreneurs in this format.
The committee recommends examining the possibility of making adjustments to the existing regulations in order to create a more suitable regulatory framework for this trading activity in the form of a dedicated platform for the trading of crypto assets, which it believes will best mitigate the risks involved. The regulation of crowdfunding in Israel is offered as a similar model for the ISA to build on.
The committee also recognized the importance of a direct relationship between regulators and industry and has invited projects to contact the ISA, promising to examine their activity in an open manner, in as short a time as possible, and by adopting a flexible interpretation.
What do you think about the possibility of creating a regulated token exchange in Israel? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
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Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.
Amsterdam-based blockchain ticketer GUTS Tickets has improved on its previous record for the largest-ever blockchain ticketing sale, selling roughly 50,000 tickets in two hours.
In September 2018, the GUTS team sold 50,000 tickets in three hours. The tickets were for comedian Jochem Myjer’s 36-night run at Amsterdam’s Royal Theatre Carre (1,756-cap.).
Now, the Dutch ticketing platform has broken that record, selling the same amount of tickets in just two hours, a 33% time improvement.
The ticket sale, once again for the Dutch comedian, resulted in 118,000 unique users visiting the GUTS website. As a result, the GUTS Tickets app trended on the Google Play Store and became the most popular free app in the Netherlands.
The sale included several venues, spread out over the country. All customers in the waiting line were able to highlight their preferred venue and could see the likelihood of getting tickets for that specific venue. If, during the time spent waiting, the tickets for a customer’s chosen venue sold out, they were given a choice of other venues where tickets were still available.
“The doors are now open for more large-scale and international events, which will be the focus for the time to come”
GUTS uses the underlying GET Protocol, a “fraud- and scalping-proof ecosystem”, which allows event organisers to track their tickets, with all transactions being registered with blockchain technology. The result is a ‘smart ticket’, which cannot be duplicated or sold for a price other than that set by the issuer.
According to GUTS, this most recent achievement proves that the blockchain ticketer and GET Protocol are both ready for bigger things.
“The doors are now open for more large-scale and international events, which will be the focus for the time to come,” said the Dutch ticketing company in a statement.
In January, GUTS community manager Olivier Biggs discussed the possibility that dynamically pricing tickets — allowing prices to fluctuate based on market demand — could generate additional revenue for humanitarian projects, such as cancer research.
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As part of Japan’s drive to embrace electronic payments, Mizuho and about 60 other banks have launched a new digital wallet called J-Coin Pay. But contrary to what you may have read about it, it doesn’t use crypto.
Mizuho’s new service uses QR codes to process smartphone payments, resembling Alipay and WeChat Pay, the dominant platforms in China. Japan has one of the most cash-intensive economies in the world, and its government is pushing for an electronic overhaul in time for the 2020 Olympics in Tokyo. Digital payments account for about 20% of transactions in Japan—compared with more than 60% in China—and the government aims to double that percentage by 2025.
According to a Mizuho spokesperson, J-Coin doesn’t use cryptocurrency or blockchain in any form. That conflicts with numerous reports going back as far as 2017 suggesting that the bank was researching or planning a digital currency pegged to the Japanese yen (paywall).
Perhaps some confusion is understandable: “J-Coin” certainly sounds like a newfangled digital token. Mizuho’s statement about it describes it as a “digital currency platform.” A spokesperson reportedly told CNBC in 2017 that it would be pegged to the yen. The bank claims it had always planned to build a QR-code payment system rather than a standalone digital currency.
It’s unclear what benefits a crypto-yen would have provided anyway; consumers have been transacting with electronic money since before the internet was invented. Amid all the hype about JPMorgan’s JPM Coin (paywall) and Facebook’s reported digital currency, it’s worth remembering that “crypto coin” is another way of saying “database entry.” Payment companies from Swift to TransferWise have said managing such entries on a blockchain doesn’t necessarily make payments faster or cheaper.
With or (mostly) without blockchain, digital transactions are catching on around the world. Japan, though, has been slow to make the digital leap. The country has an aging population, whereas digital money tends to be more popular among younger residents. The country also has a low crime rate, which makes people less worried about carrying large sums of cash around. Years of low and even negative interest rates may have inspired the Japanese to hoard cash to avoid having their savings eroded. Habits around money are slow to change.
For better or worse, greater use of electronic money would give the Bank of Japan more scope to stimulate the economy during the next slowdown. A digitized transaction system could save merchants and businesses on cash-handling expenses, while potentially making them more productive. There’s also a risk that Japanese companies lose out on their own turf to Chinese rivals like Ant Financial’s Alipay, which has more than 700 million active users in its domestic market. In the meantime, there are still unresolved questions about privacy when it comes to digital payments, and Japan’s elderly probably wouldn’t be well served by a cashless society.
It makes sense for governments to encourage electronic payments, up to a point. But they don’t need to embrace crypto to do it.