Is Bitcoin (BTC) Basically A Tech Stock On Steroids?

There’s been a lot of talk about bitcoin being “digital gold”
but could a comparison be better made with high-flying tech stocks?

For crypto followers looking for an answer to the critics who say it isn’t backed by anything and no one really uses it to buy stuff, the digital gold idea is a handy riposte.

If bitcoin is indeed digital gold then it is the cost of
mining it that informs the measure of its intrinsic value, and that has been
variously calculated to be anywhere between circa $4,000 and $2,000.

However, Charlie Morris, the founder of data site ByteTree.com, thinks tech stocks should be the preferred candidate for similarities with bitcoin and he has found a persuasive pattern in the price movements of bitcoin and tech stocks to prove his point – with the comparator for both being network growth.

So if we look past the breakeven for bitcoin mining and unpack the metrics of the network the miners do the bookkeeping for, then we have a valuation approach that owes more to Metcalfe’s law (value is proportional to the square of connected users) than it does to a latter-day digital version of the labour theory of value or Austrian School “hard” money.

Like a tech stock “with extra vigour”

Talking to the Daily Telegraph newspaper in the UK, Morris takes the network approach, as do many others. “The more people who use it, the more valuable it becomes,” he explains.

But instead of likening bitcoin to gold he says the better match
would be with technology stocks, or at least a subset thereof.

“Bitcoin is an ultra high-growth asset that behaves just
like internet stocks, just with extra vigour,” Morris told the Telegraph.

He isn’t buying the scarcity school of thought that is often
seen as the critical value property of bitcoin in likening it to gold.

Morris thinks that perhaps as little as 5% of price appreciation is because of supply-side factors. The main driver of prices is the growth of the network and the demand that implies.

 “It was indeed
designed around the idea of gold, in that it has limited supply, but that’s as
far as it goes. By my calculations, the surge in Bitcoin is mainly attributable
to network growth – demand – with perhaps less than 5pc due to supply factors.”

If the digital gold approach is anywhere near correct then it is makes sense to divide the amount of gold above ground by the total supply of bitcoin to arrive at a figure of $333,000, assuming 100% displacement of the yellow metal.

Bitcoin network demand is on the up

Morris says a valuation methodology makes much more sense and
that means looking at transactions. Again, Morris is by no means unique in that
regard.

Others have done work on this, notably Willy Woo on the network
value to transactions (NVT) ratio, so Morris is not saying something new but
does draw out the parallel with “internet stocks”.

Looking at the value of transactions, Morris notes that bitcoin:
“is on track to see $600 billion transacted this year, a number that will soon
pass a trillion”.

He continues: “To put that into perspective, $18 billion of
Bitcoin changed hands in 2013, when there was a widely reported bubble, and
$576 billion in 2017, when there was said to be another bubble.”

The $333,000 valuation for bitcoin as digital gold, assuming
demand is constant and 100% displacement, is lofty indeed but the tech stock
valuation thesis could see a future price much higher still.

If bitcoin becomes the reserve currency of the crypto space,
if not, initially at any rate, the wider financial system, then the room for “network
growth” will be immense, assuming progress on scaling solutions.

With Facebook going all in on crypto, Amazon offering
blockchain as a service on Amazon Web Services and going Google beating a similar
path to name just three of the US giants, not to mention how the tech cold war
is likely to turbo-charge blockchain and AI development in China, it doesn’t
take much of a leap to see how bitcoin could find itself at the centre of the crypto-secured
digital money world.

Striking correlation

According to the report, Morris “pointed to a striking correlation between the price of the cryptocurrency and the share prices of technology companies, as measured by the Solactive Social Media index”.

Courtesy Telegraph

The two follow each other extremely closely which may also
be partly because the investors in stocks such as Facebook and Twitter overlap
somewhat with the same demographic of investors driving bitcoin buying.

However, the “tech stock” view may have a downside, given that the stockmarket by most measures is looking pretty frothy, with the bull market likely at or near its end.

Big tech might not be so hot from here on out, but bitcoin’s just getting started

So, could Morris’s line of thinking see the bitcoin price
follow tech stocks lower?

Also, how much further does the likes of Facebook have to grow? And Twitter and Snapchat, for example, have basically stopped growing.

And the cost of competing is rising. As Clem Chambers, Forbes contributor and chief executive of ADVFN and Online Blockchain recently put it regarding the computing power consumed by the bitcoin network, “don’t worry about bitcoin, AI will fry the oceans”.

The huge capital outlays are starting to eat into the profit of the tech giants, even before the regulators get their teeth stuck into the social platforms.

And it’s also assuming some tech stocks actually make a profit – hopefully no readers had any money in the Uber or Lyft IPOs because the VCs and private equity sucked all the value out a while back.

The truth is the market opportunity that bitcoin is
attacking is more fundamental than social networks – it aims to disrupt the
entire monetary realm and if it only partly succeeds it could be a network of
value transmission far greater  order of
magnitude than even the largest of tech stocks.

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Find the Bag, Find the Gold

Find the Bag, Find the Gold

On May 13th 2019, at the Consensus 2019 NYC Conference, BitcoinHD (BHD) presented the next generation consensus system to the whole world: POC, or Proof of Capacity.

Named after the core spirit of blockchain – Consensus
between participants in a network – the conference attracted community KOLs,
representatives from established organizations, investors and the world’s top
developers to gather and exchange their newest understandings and discoveries
about blockchain. As an enthusiastic member of the blockchain industry, BHD
attended the conference to present its POC consensus, to share, innovate and
create together with all the other industry peers.

BHD is a new type of cryptocurrency based on Conditioned Proof Of Capacity (CPOC). It uses a hard disk as a consensus participant, significantly lowers mining costs and the entry barrier for everyone. BHD’s mission is to create a valuable financial system that will change the way cryptocurrency is produced.

The innovative POC consensus and mining mechanism attracted much attention and interest at the Consensus 2019 conference. BHD set up an interactive game, ‘Find the Bag, Find the Gold’ on the exhibition floor. The community volunteers distributed BHD bags to visitors. There was a ‘golden treasure house’ hidden among the bags, and a ‘key to the world of POC’ which could open the ‘golden treasure’. All participants with a bag had a chance to win the potential ‘golden reward’. In 2008, the emergence of Bitcoin opened a treasure house of cryptocurrency and enabled many people to gain financial freedom. What will POC-based BHD bring us in future?

(visitor with ‘golden treasure’ bag)

BHD
is a new project based on a new form of consensus, just like BTC at an early
stage. BTC mining has become difficult over the years; BHD still has infinite
possibilities. Maybe these hidden opportunities match the way BHD named the game
at the conference: Find the bag, Find the Gold.

Media Contact:

Website: http://www.btchd.org/

Email: master@btchd.org

Twitter: https://twitter.com/@btchdcommunity

Telegram: https://t.me/BitcoinHDofficial

Discord: https://discordapp.com/invite/pWde3gn

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Bitcoin Bulls Count on 2020 Halving to Give BTC Price Massive Push: Bloomberg

Bitcoin halving takes place every few years to prevent Bitcoin value from inflation, analysts and bulls point out that after each of those events Bitcoin price experienced a substantial rally

Halving or ‘halvening’ happens every few years – as soon as new 210,000 blocks are mined. When it takes place, the rewards of miners are cut down in half. As per the recent Bloomberg article, crypto bulls are already rubbing their hands in anticipation.

Bitcoin miners’ reward will diminish

The reason is that after the previous two
halvings Bitcoin quotes showed an extensive surge, bringing traders more than
healthy gains.

What happens at a halving is that the amount of coins that miners get for using their computation power to verify transactions gets cut by half.

The first halving occurred in 2012, another one was in 2016. After the first one Bitcoin price hit $1,000. The 2016 halving made Bitcoin price surge to an ATH of over $19,000.

Another mining award cut is expected in May 2020 and then an award for each block will total 6.25 BTC, instead of 12.5 BTC now.

Crypto community expects a major bull run

A recent Twitter poll shows that among 2,500 voters, 61% expect BTC price to demonstrate a major rally. Since the award will be cut down by half, fewer Bitcoins will be released in circulation, which will make the coin scarcer than it is now, thus the price should go up.

https://twitter.com/100trillionUSD

As said above, after the first halving in
autumn 2012 Bitcoin price spiked from $10 to $1,000 within a year. The next
halving saw Bitcoin surge to almost $20,000 before it collapsed in 2018.

Crypto experts agree to differ

Major Bitcoin bulls, writes Bloomberg, such as
Anthony ‘Pomp’ from Morgan Creek Digital, have been drawing attention to the
2020 halvening, emphasizing its importance.

Some crypto experts remain skeptical, though. Eric Turner, the head of research at Messary Inc., believes that the connection between Bitcoin halvings and Bitcoin price surges is very thin.

Gil Luria from DA DA Davidson & Co thinks
likewise:

“There are so many factors that impact the price of Bitcoin, but this should not be one of them.”

Photo by Aleksi Räisä on Unsplash

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Litecoin (LTC) Leading in $10 Billion Crypto Market Surge

A crypto correction that started
a couple of days ago
was quickly quashed when Bitcoin found support and moved
back towards $8k once again. Since then the altcoins have been on fire with
some, such as Litecoin, surging ahead of the pack.

Another $10 Billion Back into Crypto

From a low of $243 billion yesterday crypto market
capitalization has pumped to a high of $254 billion before stabilizing at
around $250 billion where things currently sit. Daily volume has surpassed $80
billion once again which is extremely bullish. May has seen some of the highest
volumes on record and they have been maintained which has kept markets buoyant.

Total market cap 24 hours – coinmarketcap.com

Bitcoin has made it back over $8k one again, hitting an
intraday high of $8,140 according to Coinmarketcap.com. The
bullish sentiment has resulted in a further 2 percent gain from Bitcoin which
has yet to have any real pullback in this current rally. After spending the
majority of April at around $5,300 BTC has found a new resistance zone around
$8,000. Its market dominance is currently 56.6 percent and the altcoins are
leading the digital race today.

Litecoin Ignited in 20% Pump

Litecoin is one of the top performing altcoins at the time of writing. It has surged from $88 to $104 over the past day and reached its highest level for almost a year. There is massive resistance at $100 which LTC has already hit last week. A move above it could send the ‘silver of crypto’ surging in a parabolic pump mirroring that of December 2017. LTC has trounced EOS to take fifth spot with a market cap now exceeding $6.4 billion.

The halving
event in 73 days
is likely to be driving early momentum for LTC which is
bound to trade a lot higher as August approaches. Coin scarcity and increased
demand could push prices back to their all-time highs of $370.

Binance Coin is also trading well and has just made a new
all-time high at $34. A 7 percent surge on the day has been the result of the
world’s top exchange announcing margin trading features. Though it can’t catch
Litecoin at the moment, EOS
has made 8 percent and is up to $6.50 at the time of writing.

The momentum for crypto markets is holding and May is
shaping up to be another month of solid gains. Crypto market cap has doubled
since the beginning of the year indicating that things have finally lifted off
the bottom and the bulls are running the show now.

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Bitcoin Demand Will Surge if The Chinese Yuan Falls More: BitMEX CEO

As we reported the other day, evidence is purportedly mounting that Bitcoin and the Chinese Renminbi (RMB), known as the Yuan, are tied to each other. A report from the South China Morning Post recently noted that after Donald Trump, the president of the U.S., announced tariff changes on Chinese imports, BTC began to rally. Simultaneously, the yuan purportedly fell to its lowest level in six months, as China looked to move against Trump.

Garrick Hileman, the head of research at industry startup Blockchain.com, told the SCMP that his team, in fact, sees a “strong inverse correlation” between the two assets. He does add that Blockchain.com can’t be “100% certain that Bitcoin’s recent price increase is being driven by trade tensions”, but subsequently noted that the Yuan has traded inversely to the RMB in the past.

As seen in the Twitter post below, there are some eerie similarities in the charts.

This sentiment was perpetuated on Thursday, with BitMEX’s Arthur Hayes releasing his latest edition of “Crypto Trader Digest”. In the edition, the former institutional investor accentuated that Bitcoin is a monetary asset, and that certain actions between America and China could result in a demand for BTC. He points to the fact that with the mounting trade war and a potential for the People’s Bank of China to tighten credit lines, the Chinese Yuan could continue to lose value against the U.S. dollar. He then concludes:

The OTC market is vibrant, and these venues have found politically acceptable ways to allow buyers and sellers to meet in China. The key number is 7.00. If the PBOC allows the Yuan to break this level, ordinary Zhou’s will scramble to get their hands on Bitcoin and other cryptos. Similar to 2015, a sharp and sudden Yuan depreciation could lead to the beginning of another epic bull market.

He isn’t the only industry exec with this thought process. In a recent Fortune article, Barry Silbert of Digital Currency Group stated that Bitcoin is best seen as a “non-correlated asset”.

Deemed Moot?

Some, however, believe that this analysis is moot.

Macro analyst Alex Krüger recently pointed out that Friday’s sell-off shows that BTC is a hedge against trade wars is “nonsensical”. Citing the fact that the Bitstamp sell-off was practically engineered by one entity, which many speculate was trying to turn a profit on BitMEX, he adds that Bitcoin’s recent parabolic rally likely is a result of “a handful of parties.”

He goes on to joke that the Bitcoin and RMB narrative is just as foolish as those saying that the cryptocurrency is correlated with avocados, which has spiked alongside BTC.

And, BTC hasn’t rallied much, despite mounting trade threats and tariffs from both sides, somewhat disvaluing this theory. But, who knows?

Photo by 郑 无忌 on Unsplash

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Bitcoin (BTC) Technicals Suggest Bearish Drawdown Ahead

Bitcoin Charts Seem Bearish

Bitcoin (BTC) may just have bounced back from another sell-off, moving from $7,600 to $8,000, but one analyst is still sure that the cryptocurrency market is currently topping.

Analysis group Bravado’s Bitcoin Jack, who seemingly called Bitcoin’s move to $8,000, broke down his thoughts on the matter in a Twitter thread. He notes that Bitcoin recently reached its “FAPFAP” bear market average price level, which Jack claims signals an impending reversal, as he saw similar patterns in gold, the S&P 500, and Bitcoin in its history. What’s more, BTC is currently trading at the monthly and weekly resistances from July 2018, which the leading cryptocurrency was rejected from when it attempted to break out.

He goes on to draw attention to the fact that parabolic advances, like the one that digital assets across the board just experienced, always result in a 60% to 70% retracement, which would result in BTC heading back to $5,000 or $6,000. And, to top that all off, Jack bluntly points out that longs are clearly consolidating on BitMEX; volume has slowed, despite the recent rebound; the Bitcoin-backed exchange-traded funds are off the table; and altseason, especially for an asset like Ethereum, seems to be right on the horizon. Not the prettiest signs.

He isn’t the first to have recently been bearish on Bitcoin for a medium-term time frame. As reported by Ethereum World News previously, Magic Poop Cannon, an ill-titled technical analyst that called last year’s BTC decline from $6,000 to $3,000, noted that there’s a likelihood that the bull market isn’t on yet. Per previous reports, the trader explained that there are clear signs that Bitcoin is overextended: the Money Flow Index and Network Value to Transactions ratio have both neared the top of their oscillators, which is a pattern that has historically preceded drops of over 80%.

He adds that Bitcoin’s current rally makes no logical sense, pinning the irrationality of this market to institutional investors, futures, trading desks, high-frequency trading, and other factors that have been known to manipulate the underlying nature of markets. 

Yet, others have been a tad optimistic, stating that Bitcoin still has some fuel to boom. Popular commentator and trader Galaxy recently opined that BTC is currently trading in a symmetrical triangle pattern (even after today’s $300 plunge), which studies state has a 60% chance of leading to a price breakout. If this breakout occurs, the analyst suggests that a move to $10,000. A breakout could occur any time within the next three weeks.

And more optimistically, analyst Nebraskan Gooner recently astutely noted that his proprietary “Top Goon X” indicator, which has historically flashed “buy”/”parabolic” to precede massive moves to the upside, has just issued a signal after over three years of inactivity. And, just as importantly, Bitcoin’s current one-day chart looks much like it did prior to BTC’s rally from $200 to $1,200 in 2013.

Photo by Kyle Johnson on Unsplash

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Indicator Suggests Bitcoin (BTC) Needs To Correct, But Don’t Worry

The Bitcoin Party May Soon End

For the umpteenth time in a few weeks, Bitcoin (BTC) bulls have managed to wrestle bears out of the ring. The asset has moved back up to $8,150, and looks poised to head higher.

But as Josh Olszewicz of Brave New Coin recently pointed out, an indicator may be signaling that Bitcoin is poised for a pullback. In a recent tweet, Olszewicz pointed out that the Kijun band of the Ichimoku Cloud, a series of technical indicators coagulated to determine trends, key levels, and reversal levels, is now 30% away from price levels. The last time such a delta was seen, BTC spiked. The thing is, that’s when the price was 30% under the Kijun band.

So if history is of any indication and if the analysis of the Cloud works for overbought and oversold assets, BTC could soon shoot lower, falling closer to the Kijun band. But, there might be some hope, as 2017 saw Bitcoin trade over 30% above its Kijun band for weeks on end, giving BTC the chance to run further from here before a potential drawdown.

Although a pullback seems inbound, such a move would present a solid buying opportunity — may be one of the greatest in this market cycle. Josh Rager, an advisor/team member of crypto exchange upstart Level, recently pointed out that there are high rewards for buying the bottom of pullbacks. Rager notes that when BTC experiences a 30% drawdown in a decidedly ongoing uptrend, buying opportunities are rife.

In fact, the last time 30% pullbacks were seen, you could buy BTC at the bottom and sell it weeks/months later for often over 100% profit. The thing is, assets cannot go parabolically higher forever.

Rager’s recent comment comes after he pointed out on Twitter that Bitcoin’s current three-day chart structure is almost identical to one seen in BTC, which saw the asset break out of accumulation, peak, then drawdown prior to a next long-term bull run, which brought BTC from a $200 low to a $20,000 peak.

Even still, there’s a chance that a correction might not even come to fruition. Rager on Friday noted that a so-called “meme triangle” formation on Bitcoin’s six-hour chart has continued to hold, almost to a tee. With Bitcoin seemingly keeping up the bullish momentum, there’s a growing likelihood that BTC will close a key candle above $8,200. This, in the eyes of the analyst, could set the stage for a surge to $9,000 and beyond, where there sits the crypto market’s next key horizontal resistance.

But after that, who knows where the leading cryptocurrency will head next? At this point, we just need to wait and see. Optimists

Title Image Courtesy of Marco Verch Via Flickr

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Monero (XMR) Developers Plan New Proof of Work Algorithm ‘RandomX’

Monero XMR Algorithm RandomX

Developers for Monero are considering a shift in their algorithm that will replace its current CryptoNight operating system.

Recent industry talk on algorithms has centered on the second largest cryptocurrency by market cap Ethereum, which is in the midst of a landmark 2.0 upgrade that will transition the currency from Proof of Work (PoW) to Proof of Stake (PoS). The  decision has sparked debate over whether Proof of Work is becoming an outdated model for cryptocurrency and if PoS can offer more in terms of energy efficiency and utility.

Proof of Work Transition

However, the industry’s leading privacy coin Monero (XMR) is not yet ready to give up on PoW. According to the most recent update, Monero developers intend to transition from their current Proof of Work algorithm to a new model that will rely upon the ‘RandomX’ algorithm. The transition is being made in agreement with Arweave, a data storage blockchain protocol, who will be funded to perform an audit on the new algorithm according to an email sent to CoinTelegraph.

Prior to the transition to RnadomX, Monero developers have relied upon regular hard-forks of the currency every six months, in order to keep ahead of mining resistance to application-specific integrated circuits (ASIC). However, the implementation of regular hard-forks have caused pushback from the Monero community, particularly over the issue of centralization. As pointed out by GitHub members, the act of conducting a hard-fork necessitates a level of centralization in a cryptocurrency, which increases with the number of repeated forks.

Arweave claims that RandomX will provide the benefit of keeping Monero mining resistant to ASIC without compromising the currency’s decentralization any further. The company also claims that the new Proof of Work algorithm will require less developer input and will make mining through graphics processing units (GPUs) uncompetitive.

The report also includes details on funding for the project. Arweave has partnered with Monero developers to cover the costs the $150,000 cost of the audit, which is expected to take place over the next two months. Miner specific details related to RandomX have been posted on the GitHub page.

Private Transactions on the Rise

Despite being ranked in the top 15 cryptocurrencies by market capitalization, Monero has come under fire for its presence as an anonymity coin. XMR has been associated with hackers and malware extortionists, who utilize the privacy features of the coin to avoid detection.

Nonetheless privacy, even on the open-ledger of blockchain, is becoming an increased focus for the industry of cryptocurrency. TRON announced its intention to implement zk-SNARK transactions to TRX, allowing users of the network to conduct anonymous transactions. Just this week Ethereum co-founder Vitalik Buterin proposed a solution for anonymity in ‘one-off’ ETH transactions, which will allow Ethereum to compete with coins offering users the option of privacy.

Monero could find itself in the driving seat for a wave of adoption if private digital transactions become a focal point for cryptocurrency. While other competing coins exist on the market, XMR has managed to carve out a substantial place for itself in the field of anonymity-based cryptocurrencies.

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Binance Coin (BNB) Price Jumps Following Screenshot of Margin Trading

Binance Coin BNB Margin Trading

Binance Coin (BNB) continues to be one of the top earning cryptocurrencies in 2019. Since the start of the year, the native token to the leading cryptocurrency exchange Binance is up over 460 percent, with little halt in sight as the crypto markets turn even more bullish.

As previously reported by EWN, the rumor mill has been hinting at a forthcoming integration of margin trading on Binance. Speaking to community members earlier in the week, Changpeng Zhao confirmed that margin trading was being tested, but did not give a specific timeline on its release.

In a Twitter post published on May 24, the Binance team further added fuel to the speculative fire, with a series of screenshots that seem to all but confirm margin trading is coming in the very near future. While the post was making a tongue-in-cheek reference to their “dark mode/light mode feature,” the screenshot clearly displays the option for margin trading–a feature which is not currently available to traders.

“Dark mode 🌚 or Light mode 🌝? #Binance”

BNB responded in price to the news, jumping 9 percent as of writing and outpacing the gains of Bitcoin and most other top ten cryptocurrencies. While Binance is still not giving an exact date on when margin trading will hit the exchange, Changpeng Zhao claimed it would occur “very, very soon,” with the caveat that large-volume traders will have first access.

Despite suffering a $40 million hack in early May, Binance has continued to be a leader in the space of cryptocurrency exchanges and has paved the altcoin market valuation with the gains of BNB. While some have taken fault with the exchange’s handling of the hack, they remained transparent through the process of their security upgrades and were quick to notify investors that losts BTC would be covered via the #SAFU Fund.

Binance has also made a strong effort to boost the intrinsic valuation of their native token, at least in the eyes of investors looking to find fundamentals in the cryptocurrency market. While crypto may act more akin to a volatile currency than an actual digital asset, Binance has done its part to provide reason for traders to invest in BNB. The currency provides a discount on trading fees and is also required–in an increasingly large amount at today’s price–to participate in the Binance Launchpad lottery.

Given the trajectory of the exchange’s decisions to date, it’s possible margin trading will somehow feature into the use of Binance Coin. While the exchange has yet to make any statement on user access, it could require an account minimum of BNB, similar to the exchange’s requirements for Launchpad. Such a move would likely take the price of BNB even higher, although the exchange would have to contend with a realistic BNB holding at its current valuation.

Already investors are required to have 500 BNB valued at $17k, in order to receive the maximum amount of lottery tickets and insure their highest chance of Launchpad buy-in. If the price of Binance Coin continues to climb, Binance could buffer all but the highest-capital investors.

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Ripple (XRP) Price Could Struggle To Recover Versus Bitcoin (BTC)

Ripple Price Analysis XRP BTC Chart

Ripple price extended losses
below the 0.0000600 support level against bitcoin. XRP started a decent
correction from 0.0000535, but it won’t be easy to clear the 0.0000600
resistance area.

Key Talking Points

  • Ripple price declined further and traded below
    the 0.0000550 support against bitcoin before correcting higher.
  • There was a break above a key bearish trend line
    with resistance at 0.0000570BTC on the 4-hours chart of XRP to BTC (Data feed
    via Binance).
  • The price is likely to face a strong resistance
    near the 0.0000600BTC and 0.0000612BTC levels.

Ripple Price Analysis

In the past couple of analysis, we discussed the chances of more downsides in ripple below 0.0000650 against bitcoin. XRP remained in a strong downtrend and broke the 0.0000600BTC and 0.0000550BTC support levels.

Ripple Price Analysis XRP BTC Chart

Looking at the chart,
the price traded to a new yearly low near the 0.0000536 level and later started
a decent upward move. It corrected above the 0.0000550 resistance level to
start a steady rebound in the near term.

The bulls succeeded in pushing
the price above the 50% Fib retracement level of the last decline from the
0.0000629BTC high to 0.0000536BTC low. Moreover, there was a break above a key
bearish trend line with resistance at 0.0000570BTC on the 4-hours chart of XRP
to BTC.

The price surged towards the
0.0000600BTC level, where sellers appeared. There was a failed attempt near the
61.8% Fib retracement level of the last decline from the 0.0000629BTC high to
0.0000536BTC low.

The price even failed to test the
0.0000600BTC level and the 100 simple moving average (4-hours). As a result,
ripple retreated and trimmed most its gains.

Clearly, there is a strong
resistance in place near the 0.0000600BTC and 0.0000612BTC levels. To start a
strong recovery, the price must clear the 0.0000612BTC resistance level and
settle nicely above the 100 SMA.

If not, ripple price might
decline once again below the 0.0000550BTC support level. If there are
additional losses, there is a risk of a break below the 0.0000536BTC swing low
and XRP could even test the 0.0000500BTC support area.

The market data is provided by
TradingView.

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