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📈 Price Predictions
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Bitcoin Price Reaches $11,800 But Bulls Are Exhausted, For Now

  • Dmitry Cake
    📈 Price Predictions

    The bears strike back: buyers pushed Bitcoin price through critical resistance but couldn't protect it

Bitcoin Price Reaches $11,800 But Bulls Are Exhausted, For Now
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

The cryptocurrency market was overflowing with fateful events on Tuesday as we watched with great interest. Though not on the first try, Bitcoin did manage to overcome the critical resistance level, reaching a maximum of $11,800 during the day.

However, just a few hours later, the bears came out of their long hibernation and struck back at a crucial moment, bringing the price of the underlying asset down by $1,000, and total market capitalization down by $30 bln to $480 bln.

No reason to panic

It was with good reason that we advised our readers to be cautious and refrain from trading operations because the main thing in such a situation is to avoid hasty decisions that could lead to loss of assets.

“In general, in our opinion, investors have no reason to panic, the growth scenario remains in effect, and the recent events should be seen as a necessary step back to refuel.”

As it usually happens, altcoins reacted strongly to Bitcoin’s correction and colored the market red (both in the top 10 and beyond). While BTC decreased by about 2.5 percent, other assets fell by eight percent or more, on average. This allowed the forefather of all cryptocurrency to gain even more dominance, up to 39.2 percent, which corresponds to the values ​​of July 2017.

IOTA suffered more than others, conceding the last position in the top 10 to Dash after a 12 percent decrease. It’s followed by Stellar, with a price decrease of 11 percent. NEO and Bitcoin Cash round out the losing coins with a decrease of nine percent each. Litecoin is looking better than the rest of the market, falling by “only” four percent.

BTC/USD

At the time of writing, Bitcoin is trading near $11,000. The reason for the price decline was the weak activity of buyers after reaching the critical resistance. Yes, this level was broken, but not on the first attempt and at rather low trading volumes. After a three week ascent without significant rollbacks, the resources of the bulls were depleted.

Picture 1

It’s a good sign that the price stayed for a sufficiently long time in the upper register of the ascending channel, the boundary of which slowed the descent. According to the volume profile data, a large amount of BTC for the period since Dec.17 (the previous global correction) was traded in the range of $10,750-$11,300, and we are now in the very middle. Further price reduction cannot be ruled out, although it is unlikely to be significant, $10,750 coincides with the 0.618 Fibonacci retracement. At the most, there is the possibility of a safe decline to $10,500. As for growth scenarios, they will be activated only after a second break through the resistance and the settling of price around $12,000. We recommend our readers to keep their defenses and not to part with long positions.

ETH/USD

Bitcoin correction could not leave its nearest competitor unaffected, as a result, Ethereum price fell to $860. On the chart, we see the activated figure "head and shoulders," the dimensions of which have been realized with high accuracy. In addition, the price decline was slowed by the 0.236 Fibonacci retracement.

Picture 2

The fair price for Ethereum in the considered time interval is $930 and we believe that this level will soon be reached again. However, if Bitcoin price correction continues, we can’t exclude the possibility of Ethereum movement to $820, where there is strong support in the form of the lower boundary of the ascending channel, as well as the 0.382 Fibonacci retracement.

DASH/USD

The DASH chart is quite reminiscent of Ethereum’s price fluctuations, with one difference- DASH has overcome its critical resistance level (marked on the chart in red). Otherwise, the situation is similar, the current drop to $660 also stopped near the boundary of the ascending channel and the 0.236 Fibonacci retracement level, with a small margin.

Picture 3

The fair price of Dash is very close- its value is $700. In case of further decline, in the worst-case scenario, we can see a test of the 0.382 level, coinciding with the price of $600. We will reiterate: there is no reason for panic. Medium and long-term investors should not view the current situation as a threat to future profits.

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About the author

Dmitry is a professional trader fascinated by the opportunities that crypto industry provides. His experience is backed by writing skills and the Master's degree in Economics. Dmitry's passion is to show crypto enthusiasts how beautiful and precise the technical analysis can be.

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Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’

  • Yuri Molchan
    📰 News

    The head of a major Bitcoin mining pool says that Bitcoin privacy is weak and must be improved to prevent BTC from avoiding governments’ clampdown

Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’
Cover image via www.123rf.com

The CEO of one of the largest BTC mining pools, Poolin, has recently stated in an interview that Bitcoin privacy has to be improved. The current privacy features make BTC vulnerable to potential regulatory bolt tightening, says he, as reported by Forbes.

The Poolin mining company was set up by several former employees of BTC.com – a world’s major mining pool, a subsidiary of Bitmain. Among them was the Poolin’s current CEO Kevin Pan.

“Bitcoin’s privacy features are quite poor”

Over the past years, developers have suggested several ways to improve Bitcoin’s privacy. However, those were rejected by the community, since they would hard such major things as security, scalability, etc.

A good example here is Confidential Transactions that were among those suggestions. They disguise the amount of BTC sent in transactions. However, the integration of it was rejected, since it could have had a negative impact on the public verifiability of the present BTC supply.

Kevin Pan says that privacy is much more vital for a crypto asset development than scalability. Pan says:

“There is no other big question if the privacy issue is solved.”

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Governments may start controlling BTC miners

The company CEO believes that in theory, authorities or law-enforcement agencies may start telling miners to block certain address from receiving funds or sending them. However, in that case that would have to be 51 percent of the BTC network.

Pan believes that unless a solution to this problem is found soon, governments will get a chance to prevent transactions to certain addresses from happenning.

“What is more troublesome now is if government or law enforcement departments begin to create a blacklist of transaction addresses, it will make certain transactions unable to be packaged.”

“In fact, these can be done. But if there is privacy, you can't know who the address belongs to, and you can't determine how much the amount is, and there is no way to control the currency system. So for me, Bitcoin is basically no problem if the issue of privacy can be solved.”

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China plans to clamp down on BTC miners

Previously, U.Today reported that Inner Mongolia, an autonomous region of China, plans to ban all the numerous mining pools located there soon.

Since this region is one of the biggest local crypto mining areas, some believe that China is about to ban mining of all cryptocurrencies ahead of the so-called ‘China Coin’ launch.

Do you think that poor Bitcoin’s privacy features could indeed bring down regulatory control over BTC one day? Feel free to share your view in the comments section!

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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