Bitcoin Is Dead! For the 317th Time…

  • Thomas Hughes

    Bitcoin is bleeding value, but pessimists have claimed it died 316 times before, so why believe it will stay dead the 317th time?

Bitcoin Is Dead! For the 317th Time…
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The first rule of investing is “Buy low, sell high,” or rather “Don’t invest more than you can afford to lose,” or…. ah, what’s the point of knowing which one is the first and most important rule? It’s known that Ups and Downs are normal, i.e. bullish and bearish market states, so we don’t have to get all panicky about it.

Yes, Bitcoin is bleeding value, but pessimists have claimed it died 316 times before, so why believe it will stay dead the 317th time? “Buy low, sell high,” as they say. Is this low enough? There isn’t anything major behind the drop other than the BCH fork, panic, and some FUD here and there, so there’s no sure way of telling.

Bitmex is still in charge of 40% of the entire Bitcoin trading volume, and if we are dealing with manipulation as some have speculated, it may go even lower before rising from the ashes.

Charts at a Glance — BTC/USD

Charts at a Glance — BTC/USD

The OG cryptocurrency has lost 15 percent during the last 24 hours and almost 30 percent during the last 7 days, trading close to $4,400 at the time of writing. The market cap for Bitcoin is also dwindling and some have even predicted that XRP will soon overtake it. And while this is not a very likely scenario (at least not in the short term), there is still room for BTC to slide.

The low at 4200 is offering some support for the time being, but considering how things have been developing, we are likely to see a drop into the key psychological level at 4000. On the upside, the previous support is located at 5200, which is obviously a long distance to travel during one or two days, so a more realistic target is 4500 as BRN (big round number).

For the time being the outlook is bearish, but keep in mind the RSI is oversold and 4000 is close by, so we may see a stronger bounce around that area.

Support zone: 4200 followed by 4000

Resistance zone: 4500

Most likely scenario: drop through current support to reach 4000

Alternative scenario: sideways, choppy movement at current levels

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

👉MUST READ John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast

Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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