Bitcoin’s Monthly Candle is About to See Its Most Bullish Close Since 2017
Bitcoin and the aggregated crypto market are currently flashing some signs of tempered strength as most assets push higher
BTC is still caught within a consolidation phase within the lower-$11,000 region
Strength in other assets, like Ethereum, may help guide the benchmark crypto higher in the days ahead
One analyst is now noting that BTC is about to post one of the most bullish monthly candles it has seen since late-2017
As long as BTC’s price remains steady throughout the next couple of hours, this will be the first time that its price has closed its monthly candle above $10,700 in nearly three years.
Bitcoin and the entire cryptocurrency market are still incredibly hot, with many tiny altcoins seeing unprecedented daily returns while major assets like Ethereum and BTC continue slowly pushing higher.
It appears that this latest upswing is different from those seen in months past, as there has yet to be a “rug-pull” scenario that results in the crypto seeing a sharp retrace.
While looking towards Bitcoin’s monthly candle, one analyst is noting that the cryptocurrency is about to post one of the strongest seen since late-2017.
He also notes that this will be the first time BTC has closed this candle above $10,700 since December of 2017.
Bitcoin Shows Signs of Strength as Ethereum Pulls It Higher
At the time of writing, Bitcoin is trading up just under 1% at its current price of $11,110.
BTC has been trading around this price level throughout the past few days, struggling to gain any clear momentum from here.
It does face some heavy resistance in the mid-$11,000 region, but it may be building up strength as it consolidates above multiple crucial support levels.
In order for it to push higher, the two key levels that must be broken sit at $11,400 and $11,600.
Ethereum’s push towards $350 today helped provide a tailwind for BTC, but it remains unclear as to how high this will ultimately lead the crypto.
BTC is About to Post an Ultra-Bullish Monthly Close
While looking towards Bitcoin’s monthly candle – which is about to close in the coming hour – one analyst explained that it is the strongest seen in quite some time.
He also notes that this will be the first time it has closed above $10,700 since mid-December of 2017.
“Good time to zoom out & take a deep breath… 1M chart looking to close above $10.7k for the first time since Dec 2017… which was the only time it did so. $14k next line in the sand. 1W chart shows intermediate resistance at $11.6k with a BTFD zone from $9.7-10.7k.”
US Regulator Zeroes in on Binance Chain as SEC Awards Monitoring Contract to Ciphertrace
The U.S. Securities and Exchange Commission (SEC) intends to award a fixed-price contract on a single source basis to Ciphertrace.
The SEC is awarding the contract to the blockchain monitoring company as it plans focus on BNB coin, as well as other tokens on the Binance’s DEX. The BNB token has multiple forms of utility and powers the Binance Ecosystem as its underlying gas.
The U.S. regulator says it has chosen Ciphertrace because “its products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.”
This follows a determination by the contracting officer “that Ciphertrace Inc is the only source that can reasonably meet the SEC’s requirement in accordance with FAR Part 13.106-1(b).”
According to the SEC notice, “the period of performance for the contract is anticipated to be one year with four one year option periods and the total value of the contract shall be below the Simplified Acquisition Threshold.”
The SEC intends to award a contract to Ciphertrace on or before July 31, 2020. The regulator adds, “this notice is not a competitive request for proposals. A competition solicitation will not be issued.”
Still, the U.S. watchdog stresses the “government will give consideration to interested parties that identify their interest and capability to respond to the requirement or submit proposals by the response date of the notice.”
Meanwhile, the SEC’s announcement follows an announcement by Ciphertrace last November stating support for Binance Chain.
In a press release, Ciphertrace said at the time this support would enable developers, investors, and regulators to browse the Binance Chain blockchain, identify high-risk addresses and set controls to protect decentralized applications (DApps), exchanges or other cryptocurrency-based applications.
Ciphertrace support was expected to “enable Binance Chain to provide institutional-grade anti-money laundering (AML) controls and transparency.”
At the time of the announcement, Binance said the partnership would encourage greater community involvement, developer participation, and public interest in Binance Chain.
What does the award of this contract mean for Binance? Share your thoughts in the comments section below
Trader Who Correctly Called Bitcoin Crash Predicts Ethereum, XRP and EOS Will Surge If BTC Follows One Rule
A trader who correctly predicted Bitcoin’s big crash to around $4,000 in early 2020 is back after taking a three-week hiatus.
The pseudonymous analyst known in the industry as Capo tells his 16,000 followers on Twitter that he’s bullish on three altcoins – if BTC can remain strong.
The trader says he just bought Ethereum, EOS and XRP in anticipation of a rally in the weeks ahead. He believes Ethereum looks ready to continue breaking out against Bitcoin, after the second-largest cryptocurrency broke through a key level of resistance.
The analyst says EOS is also looking strong against both BTC and the US dollar.
As for XRP, the trader points to the third-largest cryptocurrency’s past price history, noting that its current trajectory appears similar to what happened back in 2017 before the coin’s epic breakout to an all-time high of $3.84.
When it comes to the crypto bellwether Bitcoin, the analyst says the leading cryptocurrency must turn resistance at $10,500 into support.
“As I’ve said many times, $10.5k is the key level. Above it, first target is $12k.
I’m not bearish above that level, but the bearish scenario will be in play again if BTC consolidates below this level. I’m only trading bullish altcoins setups now.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
As Gold Touches New Highs Investors Face Storage Issues, Market Dilution, Threat of Seizures
During the last few weeks, gold has skyrocketed in value over the concerns fueled by the faltering global economy. Despite the fact that gold has always been a safe-haven, many investors are looking to bitcoin because they fear central banks will dilute the market or even confiscate the gold.
Prior to Covid-19, central banks purchased massive amounts of gold and alongside this, a number of countries are having serious issues repatriating their gold reserves. This has caused investors worldwide to question gold over crypto assets.
There’s no doubt that gold has been on a tear, but many people have concerns about the precious metal being a solid safe-haven due to a number of factors. In recent years, investors have found cryptocurrencies like bitcoin (BTC) have a number of benefits that gold cannot offer.
At the time of publication, one troy ounce of .999 fine gold is trading for $1,963 and many investors believe the price is headed higher. But some of the biggest issues with gold, in comparison to crypto assets, is the problem with storage.
A few hundred thousand dollars worth of gold held by a single individual isn’t not as easy as say storing $300,000 worth of BTC. An individual has to secure the precious metal by hiding it and leveraging a safe, and oftentimes people with that much gold have a third-party store it for them.
Safes and added custodial security create extra costs to investing in gold and storing the metal with a third party means you have to trust them. The gold custodian could get robbed or a government entity could seize the metal leaving all the investors high and dry.
Moreover, governments have been known to seize peoples gold. One of the most famous instances of this type of event occurred in 1933, when American President Franklin D. Roosevelt (FDR) invoked the Emergency Banking Act. At that time, FDR also issued Executive order 6102 which forbade the hoarding of gold certificates, bullion, and gold coins.
According to FDR, the move to seize American gold stashes was meant to stimulate economic growth during the Great Depression. On April 5, 1933, FDR signed Executive order 6102, and citizens were mandated to take their bars, coins, and certificates to the Fed. They were paid $20.67 per ounce and after the Emergency Banking Act was lifted, FDR raised the price to $35 per ounce.
Many people wholeheartedly believe that this “could never happen again” but the reason why it did happen was so FDR and the banking cartel could strike 40% off the dollar and bolster the economy. The reason it could happen again is because the USD has been declining in value for years.
On July 30, 2020, the USD’s trade-weighted index dropped to a two-year low against a basket of other fiat currencies. The U.S. government could easily invoke another executive order against gold in order to keep the reserve currency of the world afloat. Furthermore, back in 1933, FDR had government entities conduct a nationwide search for gold coin, bullion, and certificates as part of the government’s “confiscation policy.”
There are a few high-profile U.S. gold confiscation enforcement that the American press covered at the time. For instance, the federal government seized double eagles worth $12.5 million at the time from an investor who was holding the coins for a Switzerland-based firm.
Another individual was charged when he tried to withdraw 5,000 ounces of gold worth $9.6 million today. Banks holding gold would notify government entities if someone was withdrawing gold and the man with the 5,000 ounces was greeted by federal agents that day. In addition to the U.S., other countries like China and Japan have had cases where gold smuggling is common and governments seize people’s gold.
Gold investors are also scared about the massive amounts of precious metal central banks have held in reserve and many suspect they could dilute the market. There are a number of central banks doing shady things with gold reserves and some of them are not allowing other countries to withdraw.
Many countries have tried to repatriate their gold, but have had significant issues from central banks. Venezuela, the Netherlands, Germany, Belgium, Switzerland, Austria, India, and Bangladesh all have had problems attempting to repatriate their gold. The countries holding these reserves could weaken the value of gold, by simply selling off massive amounts during times of economic distress.
Statistics show that the U.S. is the largest holder of gold reserves and the country is followed by Germany, the International Monetary Fund, Italy, France, Russia, China, Switzerland, Japan, India, the Netherlands, and the European Union.
In April, financial columnist David Fickling said that it was possible central banks could sell these reserves in an emergency. This happened during the 2007-2008 economic crisis as gold was supposed to be a safe haven after the 2007 Bear Stearns emergency bailout, but central banks dumped gold to provide liquidity.
Gold has been a safe haven asset for centuries, but crypto assets are far more portable and they require far less security. A person can easily send a million dollars worth of ethereum (ETH) or bitcoin cash (BCH) to anyone in the world in a matter of no time. Moving a million dollars worth of gold is not as easy. It would be much harder to seize people’s digital currencies as well, as a million dollars can simply be hidden in a twelve-word mnemonic phrase. Just the other day, news.Bitcoin.com’s financial columnist, Jeffrey Gogo, reported on how the gold bull Dennis Gartman is moving out of gold, because the market has become “too crowded.”
An individual can store a million dollars in bitcoin without paying custodial costs and do so in a noncustodial fashion. Even central banks who are attempting to repatriate their gold reserves, would have been in much better shape if they leveraged crypto assets over gold reserves. There is no doubt that gold will continue to be thought of as a safe-haven asset, but there is also no doubt that crypto-assets offer people significant advantages over precious metals like gold.
What do you think about gold’s issues? Let us know what you think about this subject in the comments section below.