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Tether Controversy Continues, But So Does the Bitcoin Rally

  • Thomas Hughes
    📈 Price Predictions

    A recent report published by Bloomberg states that Tether “has the billions it promised”, indicating that USDT may be backed 1-to-1 by USD after all

Tether Controversy Continues, But So Does the Bitcoin Rally
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.

A recent report published by Bloomberg states that Tether “has the billions it promised”, indicating that USDT may be backed 1-to-1 by USD after all.

In the past, some sources claimed that USDT is not backed entirely by US dollars and this spurred allegations of misconduct and price manipulation (some voiced concern that BTC’s rise to $20,000 was fueled by dishonest Tether trades). It is also believed that this controversy played a part in Bitcoin’s 2018 bear market.

Bloomberg reported that “$2.2 billion was in Tether’s account at Puerto Rico’s Noble Bank Ltd. on January 31. That same day, 2.195 billion Tethers existed, according to data compiled by Coinmarketcap.com”. However, this doesn’t prove that Tether has been continuously backed by US dollars and doesn’t solve the price manipulation allegation, which is still being investigated by the U.S. Justice Department.

Chart Analysis – BTC/USD

BTC/USD chart

It seems there’s no stopping the Bitcoin train as the digital currency continues higher, largely unfazed by Tether concerns or by overbought levels shown by technical indicators. It added almost 8% in the last 24 hours and more than 20% over the last 7 days, breaking the key level at $4,000 and trading at $4,160 on Bitfinex at the time of writing.

The short to medium term bias is clearly bullish and the recent break of 4000 shows that buying pressure is still high, with a potential to push BTC/USD into 4480 – 4500. That being said, the Relative Strength Index has broken above its 70 level for the third time in a short while, which is an indication that a bearish retracement will soon follow.

This potential correction can find support at 4000 (or at 4100 if it goes higher before retracing) but as long as this barrier still stands, we favor a climb into 4500 over the next few days.

Support zone: 4000

Resistance zone: 4480 - 4500

Most likely scenario: push into 4500 area (possible retracements until that target is reached)

Alternate scenario: move below 4000 and choppy price action

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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TOP 3 Price Predictions for BTC, ETH, XRP: Next Stop for the Bears?

  • Denys Serhiichuk
    📈 Price Predictions

    Analyzing the reasons for today’s cryptocurrency market decline

TOP 3 Price Predictions for BTC, ETH, XRP: Next Stop for the Bears?
Cover image via www.tradingview.com

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.

November 22nd started with a huge market dump as Bitcoin, the top cryptocurrency, lost nearly 10% of its value since yesterday. The altcoins have also followed today's downward trend, as the top 10 coins are all located in the red. 

Top 10 coins by Coinstats

Here is key information about Bitcoin (BTC), Ethereum (ETH), and XRP (XRP).

Name

Ticker

Market Cap

Price 

Volume (24H)

Change (24H)

Bitcoin

BTC

$129,201,282,733

$7,153.53

$29,610,280,555

-9.95%

Ethereum

ETH

$16,292,927,175

$149.96

$10,741,686,263

-11.77%

XRP

XRP

$10,151,900,406

$0.234456

$1,818,796,100

-4.67%

BTC/USD 

Our BTC prediction from yesterday came true as the price has almost reached the expected $6,875 mark.

BTC/USD chart by TradingView

Today’s sharp price drop for the leading crypto has more to do with a fundamental reason than a technical one. This mainly happened because of China's policy to ban any providers of crypto transactions to its citizens.

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Looking the 4H chart, BTC has updated the bottom by touching the $7,000 mark. It is unlikely to go any deeper according to the Stochastic RSI and other indicators because they are showing that BTC is oversold. Meanwhile, the $7,500 mark will be retested soon as this previously served as a support level for BTC. A bounce back might occur through the end of the current week.

At press time, BTC is trading at $7,114.

ETH/USD

Compared to BTC and XRP, ETH has faced the biggest price drop (more than 11%) since yesterday.

ETH/USD chart by TradingView

Even though ETH has lost significant value from its shares, it is more likely to return to its previous positions faster than BTC. The last bearish candle has a long wick, which suggests that sellers could not fix the rate below $150 for a long period of time. Moreover, the coin is oversold on all time frames, especially the daily ones. Respectively, this chief altcoin could come back to the $155-$160 range soon.

At press time, ETH is trading at $149.74.

XRP/USD

XRP has shown the best price dynamics against the market decline. While the majority of altcoins have lost about 10%, the rate of the third most popular crypto has been reduced by 5%.

XRP/USD chart by TradingView

XRP has more than justified our previous scenario as the rate has gone far below the $0.24 mark. In terms of a short-term price projection, it is bullish as sellers have almost sold everything, giving a chance for buyers to accumulate positions before an additional decline against the bearish market. To sum it up, a bounce back could push the price up to $0.2450. 

At press time, XRP is trading at $0.2323.

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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and make predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others.

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