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Tips On How Best To Handle Bitcoin Market Crashes

In a scenario where the price of Bitcoin is crashing, what would be the best reactions to take?

Below are a few things an investor can do to weather the storms of a market crash.

 

Maintain a Calm State of Mind

Trading Bitcoin mandates that one has a disciplined mind state, meaning that your emotions must be in check at all times. Allowing your emotions to cloud your judgment in unfavorable market conditions is never the best option and in most cases, ends in disappointment and regrets. What you should do instead is take a break, evaluate what is happening and make logical decisions.

Most times, it is best to do nothing rather than taking an action that might end up going against you.

 

Try Not to Obsess

Sitting in front of your screens all day is not going to change anything happening in the markets. Spending time making analysis and plotting charts is fine, but don’t waste hours obsessing over the predicament you might be facing. It is advisable to engage yourself with something more constructive.

However, if you still have to trade, select a limit order and move on to something else.

 

Do Not Lose Focus of the Main Aim

The fact that Bitcoin may be facing a crash at a time does not mean that the overall demand for Bitcoin is gone, it is usually just a temporary downturn. The crypto market possesses the most assorted investor base of any other sector, it is safe to say that the market will almost certainly bounce back.

Always adhere to your trading strategy. Do not let the current situation drive you to make drastic trading decisions only for the market to turn around days later, causing you further losses or opportunities.

The crypto market is an extremely erratic playing field and huge plunges and rallies are always expected.

 

Source: https://learn2.trade 

 

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EOS Begins A Gradual Rally; Can It Reach The Resistance Level At $6?

 

Key Resistance Levels: $5, $6, $7

Key Support Levels: $3, $2,$1

 

EOS Price Long-term Trend: Bullish

EOS is in a bullish move but it is encountering penetration at the $3.70 price level. The market pulls back and continues to trade below $3.70. EOS has made concerted efforts at the resistance so as to move up the price ladder.

 

Previously, the bulls have successfully prevailed over the downtrend line as the coin moves up. Similarly, if the current resistance level is surmounted, the coin will move up again to either $4.60 or $5 price level. Nonetheless, if EOS fails to move up, the coin will fall and find support at $3.20.

 

EOSUSD - Daily Chart

Daily Chart Indicators Reading:

The RSI period 14 levels 58 signify that EOS is falling and approaching the sideways trend zone. EOS is at the point of a bullish crossover which means that EOS may rise. The downtrend line has already been broken as the market went up. It is unlikely for the selling pressure to resume and price fall below the downtrend line. If it does price may retrace to a low of $ 3.20.

 

EOS/USD Medium-term bias: Bullish

On the 4-hour chart, the EOS fell to a low of $2.60 in September and October to resume a bullish move. In September, the market went up but was resisted and it dropped to another low at $2.60.

 

At this low, a trend line is drawn to establish the level of price movement. The uptrend is said to be continuing if the price makes higher highs and higher lows. Nevertheless, if the market falls and breaks below the trend line, the uptrend is said to be ended.

 

EOSUSD- 4-Hour Chart

4-hour Chart Indicators Reading

EOS is below 40% of the stochastic indicator signifying that price is in a bearish momentum. The EMAs are trending upward suggesting that EOS is rising.

 

General Outlook for EOS

EOS is in a bullish market. At a low of $2.60 in September the bull market was short-lived as it was terminated at $3.20 price level. The bulls embarked on another bullish move in October but faced another resistance at $3.70 after breaking the initial resistance at $3.20.

 

As already indicated in the price analysis, EOS may move up, if it takes care of $3.70 price level. However, on the 4-hour chart, if EOS pulls back and breaks below the trend line, the market will drop again.

 

EOS Trade Signal

Instrument: EOSUSD

Order: Buy

Entry price: $3.40

Stop: $2.50

Target: $6.0

Source: https://learn2.trade 

 

 

 

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0X (ZRX) Continues To Disappoint Investors

Key Resistance levels: $0.30, $0.35, $0.40
Key Support Levels: $0.20, $0.15,$0.10

ZRX/USD Price Long-term Trend: Bearish
The ZRX/USD pair is in a downward move after the market retests the $0.30 price level. In October, the coin was in a bullish move and tested the $0.35 resistance level. The bulls tested the $0.35 price level again and formed a bearish double top. With the formation of the bearish double top, the coin fell to the support line of the channel.

The bulls may a retest at the $0.30 price level and resumed the downward move. The market has fallen to a low of $0.27 and it is consolidating above that level. This was the previous low in May. However, if the price breaks below $0.27, the pair will drop to a low at $0.20. Nevertheless, if the $0.27 support holds, the price will move up.

ZRXUSD-Daily Chart

Daily Chart Indicators Reading:
The price has fallen to the support of the 50-day SMA and if the 50-day SMA holds, the 0x will move up to retest the resistance level. The RSI period 14 level44 indicates that the price is in the range-bound zone.

ZRX/USD Medium-term bias: Ranging
The bulls move up to test the resistance at $0.35 on two occasions and commenced a sideways move. The coin is fluctuating between the levels of $0.27 and $0.35. Nevertheless, the bears tested the support line and rebounded. The pair is likely to continue with the sideways move.

ZRXUSD-4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are trending horizontally indicating that price is in a sideways move. The stochastic indicator is above the 40% range indicating that price is in bullish momentum.

General Outlook for 0x
The ZRX/USD pair is in a downward move but the price is ranging above the $0.27 support level. After the sideways move above $0.27 and if the bears break below the support level, the selling pressure will resume.

0x Trade Signal
Instrument: ZRXUSD
Order: Buy Limit
Entry price: $0.25
Stop: $0.20
Target: $0.35

Source: https://learn2.trade 

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EURUSD Is Dominated By The Bull Market Throughout As The Pair Seek To Recover

EURUSD Price Analysis – November 18

The bulls had full control today, moving the market up during the entire European session as the FX pair confirmed its breakout past the high of the prior session after trading up to 1.1068 above during the day.

Key Levels
Resistance Levels: 1.1501, 1.1412, 1.1278
Support Levels: 1.0989, 1.0879, 1.0780

EURUSD-Daily-Nov-18.png
EURUSD Long term Trend: Bearish

EURUSD at the moment, the rebound from the 1.0879 level is initially seen as a remedy and, in the case of a further increase, the increase may be contained by the level at 1.1412 retracements from the level at 1.0879.

Although the downward trend from the 1.1501 (high) level may resume later. However, the sustained plunge from the 1.1412 level may change this bearish position and lead to a greater increase in the retracement to the level at 1.1501.

EURUSD-4-HOUR-Nov-18.png
EURUSD Short term Trend: Ranging

The EURUSD intraday bias stays neutral for the initial position and a further plunge is anticipated as long as the resistance remains at the level at 1.1073. Also, the corrective rebound from the level at 1.0879 is expected to end at 1.1501.

Meanwhile, past the low of the level at 1.0989, the bias will be revised downward to repeat the low of the level at 1.0879. However, the breakout of the level at 1.1073 may soften this bearish trend and push up the bias for the level at 1.1175.

Instrument: EURUSD
Order: Buy
Entry price: 1.1073
Stop: 1.0989
Target: 1.1412

Source: https://learn2.trade 

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Bitcoin SV Makes Upward Corrections But Struggles To Push Price Above $110

Key Resistance levels: $220, $240, $260
Key Support Levels: $160, $140,$120

BSV/USD Long-term Trend: Bullish
Bitcoin SV is making a surprising upward move after surviving a downtrend from the overhead resistance at $150. The coin fell to a low of $92 and commenced a bullish move. The price upward move can be sustained if the bulls overcome the initial resistance at $115 and $ 120.

Presently, the coin is trading at $108, attempting to break above the previous low in July. In July, the previous low was supported as the market moved up to the $180 price level. Today, the previous low is a resistance level, the price has to break above that low and close. However, BSV will fall to the low of $80, if the bulls fail to break the initial resistance levels.

BSVUSD-Daily Chart

Daily Chart Indicators Reading:
Bitcoin SV is in a bullish momentum above 20% range of the daily stochastic. The market is expected to rise and revisit the previous high of $140. The rise of BSV is depended upon the bulls breaking above the 21-day and 50-day SMAs. The price will be in the bullish trend zone if the price is above the SMAs.

BSV/USD Medium-term bias: Bullish
On the 4-hour chart, the price tested the support above $92 before embarking on the bullish movement. The formation is in the form of a bullish double bottom indicating that the coin is likely to rise. The coin is expected to rise above the $120 and retest the overhead resistance at $140.

BSV-4-Hour Chart

4-hour Chart Indicators Reading
There are prospects of the coin rising because the price is above the 21-day and 50-day SMAs. The RSI period 14 level 53 indicates that price is above the centerline 50 which means Bitcoin SV is in a bullish trend.

General Outlook for Bitcoin SV (BSV)
Bitcoin SV is in a bullish momentum. All the indicators are showing signs that BSV is in a bullish trend except the moving averages. On the daily chart, the price bars are still below the 21-day SMA and the 50-day SMA meaning that the coin is the bearish trend zone. The 50-day SMA is acting as a resistance to BSV. However, the coin will be in an uptrend once the price is above SMAs.

BSV Trade Signal
Instrument: BSVUSD
Order: buy
Entry price: $105
Stop: $92
Target: $140

Source: https://learn2.trade 

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USDCHF: Upside Momentum Attempt At Parity Losses Steam, Running Into Sellers

USDCHF Price Analysis – November 26

The USDCHF reached a new daily high of the level at 0.9987 at the start of the European session but failed to maintain momentum as investors refrained from taking important positions pending further developments on the trade dispute between the United States and China. At the time of writing, the pair was up 0.07% on the day on the level at 0.9970.

Key Levels

Resistance Levels: 1.0231, 1.0126, 1.0027
Support Levels: 0.9869, 0.9798, 0.9659

USDCHF-DAILY-Nov-26.png

USDCHF Long term Trend: Bullish

Overall, only the medium-term trend stays neutral, with USDCHF remaining in the range of the level at 0.9659 / 1.0231. In all cases, a decisive break of the level at 1.0231 is needed to indicate a recovery of the uptrend.

Otherwise, a more parallel trend may lead to another plunge. Meanwhile, the support break of the level at 0.9890 may instead target support on the level at 0.9841. The outlook is bullish, displaying yet an intact uptrend in the short and long-term trend.

USDCHF-4-HOUR-Nov-26.png

USDCHF Short term Trend: Bullish

The USDCHF is losing ground from the upside, as shown by the 4-hour RSI. But with minor support intact on the level at 0.9949, the intraday bias stays slightly higher. Consolidation starting on the level at 1.0027 should end at the level at 0.9869.

A new advance may be seen to test the level at 1.0027 again first. While a break there may resume its total advance from the level at 0.9659 to retracement from the level at 1.0237 to 0.9659 to 1.0126. On the flip side, a break of the level at 0.9949 minor support may tip the balance forward to extend the consolidation with another foot down.

Instrument: USDCHF
Order: Buy
Entry price: 0.9964
Stop: 0.9890
Target: 1.0231

Source: https://learn2.trade 

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GBPUSD Price: Following Recouping From The Low, British Pound Anticipates Upward Momentum

GBPUSD Price Analysis – December 1

The pound had a positive prior week as traders anticipate to build the scenario for buyers to step in, and now it seems likely to continue on the upside. If we can exceed the crucial level on the level at 1.3012, it is likely that the pound sterling takes off towards the level of 1.3185, and then possibly even the level of 1.3301 depending on the extent buyers push the FX pair.

Key Levels
Resistance Levels: 1.3301, 1.3185, 1.3012
Support Levels: 1.2768, 1.2582, 1.1958

GBPUSD-Daily-Dec-1.png

GBPUSD Long term Trend: Bullish

In the longer term, the increase from the level at 1.1958 is viewed as consolidation from beneath. A new advance towards resistance on the level at 1.3301 may be seen. At the moment, this may continue to be the preferred scenario as long as the level at 1.2582 resistance turned support stays intact.

However, the firm break of the level at 1.2582 may shift the target towards the level at 1.1958 low and further beneath. The outlook stays bullish, displaying an intact uptrend in the short and long-term.

GBPUSD-4-Hour-Dec-1.png

GBPUSD Short term Trend: Bullish

GBPUSD remained in consolidation since hitting the level at 1.3012 in the prior week while the trend is unaltered. The initial bias may stay neutral initially for this week. The retracement may be limited by the level at 1.2768 support.

Although on the positive side, the break of the level at 1.3012 may reactivate the entire rally from the level at 1.1958. However, the break of the level at 1.2768 may advance a further plunge to the level at 1.2582 resistance turned support.

 

Source: https://learn2.trade 

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Monero (XMR) Faces Selling Pressure After Breakout Attempt

Key Resistance levels: $70, $80, $90
Key Support Levels: $40, $30, $20

XMR/USD Price Long-term Trend: Bearish
The coin had been trading above $50 in October in a sideways trend. In November, Monero made a positive move and broke above the $60 price level. The bulls could not sustain the move above the upper price level as the coin was resisted at $65. Monero drops and breaks the low at $50 to a new low of $47. The coin is falling after pulling back to retest the previous low at $50. There are indications that the coin will fall as the previous low has been broken. If the selling pressure continues, the price will reach the lows of either $34 or $40.

XMRUSD-Daily Chart

Daily Chart Indicators Reading:
The downward move has been characterized by a series of lower highs and lower lows. The coin retested the resistance line and made a downward move. The price may fall and reach the lower lows of the support line. The XMR has fallen and reached level 42 of the daily RSI period 14. It also indicates that the coin will fall as it is below the center line 50.

XMR/USD Medium-term bias: Bullish
On the 4-hour chart, the pair drops to the low of $46 and commences an upward move. The upward move was short-lived as the coin was resisted at $56. If the coin continues its falls and breaks below $46, the downward move will resume.

XMRUSD-Daily Chart

4-hour Chart Indicators Reading
The coin falls to the support of the 26-day EMA, if it breaks below it, the coin will resume depreciation. The pair is now trading in the oversold region below 20% of the daily stochastic. This indicates that the market is in a strong bearish momentum.

General Outlook for Monero (XMR)
Monero is trading in the bearish trend zone which tends to fall. Nevertheless, all the indicators are showing bearish signals. The coin is falling after testing the resistance line, if the coin holds above the support at $50, Monero will make an upward move. On the other hand, if it drops below $47, the downtrend will resume.

Monero (XMR) Trade Signal
Instrument: DASH/USD
Order: Buy Limit
Entry price: $47
Stop: $30
Target: $60

 

Source: https://learn2.trade 

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Bitcoin Cash (BCH) Holds At The Bottom, Is The Consolidation Ongoing?

 

Key Resistance Levels: $275, $300, $325
Key Support Levels: $200, $160, $120

BCH/USD Price Long-term Trend: Ranging
Bitcoin Cash had been trading in the large price range between the levels of $200 and $240. Presently, the coin is now fluctuating at the bottom of the chart. In retrospect, the bulls break the $240 resistance line and reached a high of $310. The coin was resisted as BSH drops back to a range-bound zone.

The bears tested the low at $200 but there was a pulled back. The pullback was a correction as the upward move was stopped at $227. BCH is trading between the low at $200 and $227. The bulls are now having difficulty to move upward because of the resistance at $227. Conversely, the bears have failed to break the low of $200.

BCHUSD - Daily Chart

Daily Chart Indicators Reading:
The Fibonacci tool indicates that the coin reverses at the 1.272 extension level. BCH will resume the downtrend if the downtrend line or the support line is broken below. The RSI period 14 level 35 is indicating that the price is falling.

BCH/USD Medium-term bias: Ranging
On the 4-hour chart, the coin is fluctuating between the levels of $200 and $220. The bulls tested and broke the $220 price level but fell back to the range-bound zone. The price is trading below the $227 resistance level; a break is being expected shortly.

BCHUSD - 4 Hour Chart

4-hour Chart Indicators Reading
The market is trading above the 20% range of the daily stochastic. This signifies that BCH is in a bullish momentum. The blue and red lines are trending horizontally indicating that price is fluctuating.

General Outlook for Bitcoin Cash (BCH)
Bitcoin Cash is still confined within the price range of $200 and $240. Presently, BCH is in a tight range; a break above $227 will move price to the high of $240. Nevertheless, a break below $200 may weaken the coin to a low of $160.

Bitcoin Cash Trade Signal
Instrument: BCHUSD
Order: buy
Entry price: $203
Stop: $175
Target: $241

Source: https://learn2.trade 

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Sterling Advances Barely Hours To UK Elections As Latest Poll Predicts Conservatives Win

In just two days from now, a major event that will set the trend for the currency market for the year 2020, the UK elections will be held. In the face of a Brexit extension, UK prime minister had pushed for an earlier election in the hopes of having a majority conservatives win in the parliament which will make the Brexit deal pass through easily.

As the clock ticks, with barely less than 48 hours to this epochal event, the newest poll by Survation conducted for ITV’s good morning Britain show predicts a Boris Johnson win by 14 pts. ahead of Jeremy Corbyn‘s Labour party. The Brexit deal seemed to give the conservatives an edge as it accounted for 32% of the vote decision while NHS gave Labour party a slight edge. On the overall, a majority vote of 42% was predicted for the conservatives while Labour had 28%.

Market Reaction as the Clock Ticks
Optimism looms in the market as the prediction of a conservatives win will ease Britain’s exit from Europe by January 31 deadline.

The EUR/GBP pair continued to fall till the early hours of today breaking the 0.8411 trend line targeting the 0.8149 resistance level. GBP/USD pair rebounded to consolidate briefly targeting 1.3381 resistance levels. Technical analysis within a 4-hour MACD shows that both pairs may likely touch down. CAD edged slightly higher advanced by USMCA news but yet to consolidate gains.

Market-Reaction.png

The USD against a basket of five major currencies held steady awaiting FOMC’s minutes due out tomorrow.

Against a basket of currencies, NZD’s dominance is the highest. Sterling also gained momentum firmed up by approaching UK elections.

The safe-haven, the Japanese yen, and Swiss franc remain pressured as major events that will shape the market for 2020 are been anticipated.

On the Asia side, significant market activity wasn’t recorded as most currency pairs held steady within a day’s range.

In the Asian stock market, not so much activity was recorded being weakened by recently released Chinese PMI numbers.

Most of the indexes closed a little lower while US stocks rose swiftly after Friday’s release of US non-farm payroll reports. The outcome of the December 15 deadline set by the US for the signing of a preliminary trade pact will determine the week’s direction and even further into the year 2020.

Also due out later in the week is UK GDP figures and ZEW released out of Germany.

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GBPJPY Reverses To The Downside In A Corrective Move

GBPJPY Price Analysis – December 18

Since the trading session on Tuesday, the currency pair has fallen by almost 303 basis points against the Japanese yen. As for the near future, the GBPJPY exchange rate may recover on a cluster formed by the daily trend line at 143.07. If the cluster holds, a reversal is possible during this session.

Key Levels
Resistance Levels: 148.66, 147.95, 146.57
Support levels: 142.47, 139.31, 126.54

GBPJPY-DAILY-DEC-18.png

GBPJPY Long term Trend: Bullish

In the longer term, an increase from the level of 126.54 may likely be a consolidation pattern from the level of 122.75 (low) or the beginning of a fresh uptrend. In any case, a more rally is anticipated, while the support level of 139.31 is held in the resistance zone of the level of 146.57 / 148.66.

The result from here may show the scenario it is supposed to be. Failure to do so may expand long-term range trend. A decisive breakout of the level at 148.66 may have long-term bullish consequences.

GBPJPY-4-HOUR-DEC-18.png

GBPJPY Short term Trend: Bullish

GBPJPY intraday bias remains neutral as the correction from the level of 147.95 expands. The downtrend is expected to be limited above the support level of 142.47, which may lead to continued growth.

On the other hand, above the level of 147.95, it can reach the level of structural resistance of 148.66 in the first place. A breakout may reach the next key resistance in the following. Nevertheless, a break of the level at 142.47 may indicate a short-term trend and lead to a further rollback to the support level of 139.31.

Instrument: GBPJPY
Order: Buy
Entry price: 142.47
Stop: 139.31
Target: 148.66

 

Source: https://learn2.trade 

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XRP Price Deepens At The Oversold Region As Buyers Emerge

Key Resistance Levels: $0.30, $0.40, $0.45
Key Support Levels: $0.25, $0.20, $0.15

XRP/USD Long-term Trend: Bearish
Ripple has depreciated further and it is now trading at $0.18 at the time of writing. The price was previous fluctuating between the levels of $20 and $0.23. It was assumed in the previous analysis that if the bears break the $0.20 low, the downtrend will resume. On December 17, the bears break the $0.20 support, and the downtrend resumed. The market has fallen to $0.18 which is the previous low in 2017. The coin will likely pause and rebound at this support level. On the other hand, selling pressure may continue.

XRP/USD - Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index period 14 level 21 indicates that Ripple is oversold as the market reaches the oversold region, buyers are likely to emerge. In the oversold region, buyers emerge to take control of price. The 21-day SMA and the 50-day SMA are pointing southward indicating the downward move.

XRP/USD Medium-term Prediction: Ranging
On the 4-hour chart, the bears have broken the support at $0.20 as the market falls to the low of $0.18. The bears have terminated the price range of $0.20 and $0.23. The price has fallen to a low of $0.18 as the market consolidates above it. Ripple may rebound if the bulls defend the current level. However, if the bears break the current level, Ripple will be in serious depreciation.

XRP/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The stochastic is trading now below the 20% range of the oversold region. This indicates that the coin is in a bearish momentum. The blue and red lines of the daily stochastic are trending horizontally meaning that the bearish momentum has been weakened.

General Outlook for Ripple (XRP)
Ripple is now in a bear market as price breaks the support line of the horizontal channel. The bearish trend also terminates the sideways trend. Ripple is currently fluctuating above  $0.18. A rebound is possible if the bulls defend the support level. Besides, the coin is in the oversold region suggesting buyers to take control of price.

Ripple (XRP) Trade Signal
Instrument: XRPUSD
Order: Buy
Entry price: $0.18
Stop: $0.10
Target: $0.23

Source: https://learn2.trade 

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USDCHF Market Activity Subdued Beneath 0.9833 Level 

USDCHF Price Analysis – December 24

The USDCHF pair recorded a small daily gain on Monday and entered the consolidation phase on Tuesday, as the markets seem to be already in a festive mood. At the time of writing, the pair remained unchanged at 0.9817 level.

Key Levels
Resistance Levels: 1.0231, 1.0027, 0.9876
Support Levels: 0.9770, 0.9659, 0.9541

USDCHF-DAILY-Dec-24.png

USDCHF Long term Trend: Ranging

In the long run, the long-term trend remains neutral, while the USDCHF is trending in the range of 0.9659 / 1.0231. In any case, a decisive breakthrough of the level at 1.0231 is necessary to indicate the resumption of an uptrend.

Otherwise, trading with a large range may be registered with the risk of another fall. Meanwhile, a break of the support level of 0.9695 may try to break through the support level of 0.9541.

USDCHF-4-Hours-Dec-24.png

USDCHF Short term Trend: Bearish

USDCHF remains in the range of the level at 0.9770 and its intraday bias remains neutral. An even greater fall is expected as long as the resistance level of 0.9876 holds.

On the other hand, below the level of 0.9770, a fall from level 1.0027 may again be activated and approach the minimum level of 0.9659. Although a breakthrough of the level at 0.9876 can change the bias back to the side of increasing the resistance level at 1.0027.

Instrument: USDCHF
Order: Sell
Entry price: 0.9833
Stop: 0.9876
Target: 0.9695

 

Source: https://learn2.trade 

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Stellar (XLM) Pullback Inconclusive, Further Selling Pressure Likely

Key Resistance Levels: $0.09, $0.10, $0.11
Key Support Levels: $0.06, $0.05,$0.04

XLM/USD Long-term Trend: Ranging
Stellar has been relatively slow in price movement. On December 17, the coin fell to a low of $0.042. In defense of the current low, the price pulled back to a high of $0.046. The price movement has been insignificant as the market commences consolidation above the current price level.

Consolidation at the oversold region implies that buyers and sellers have reached equilibrium at the current price level. Stellar lacks buying at a lower level as the bears may take undue advantage to sink XLM to the $0.036 low. Alternatively, if the bulls continue their hold above the $0.042, the market will continue the sideways trend.

XLMUSD -Daily Chart

Daily Chart Indicators Reading:
Stellar is making frantic efforts to rise, as the coin is trading above the 25% range of the daily stochastic. This implies that the market is also in a bullish momentum. The 21-day SMA and the 50-day SMA are trending horizontally indicating the price range.

XLM/USD Medium-term bias: Bearish
On the 4 hour chart, the bear market exhausted its bearish run at the $0.042 support level. The coin is in a bullish move but  it is struggling above the $0.046 price level. The price action is characterized by small body candlesticks that are responsible for the range-bound movement.

XLMUSD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 52 is above the centerline 50 which indicates that the price is rising. XLM may further depreciate if the support line of the channel is breached.

General Outlook for Stellar
Stellar is still in a downtrend. The coin is still at the bottom of the chart. Buyers are scarce at the lower price level to push Stellar upward. The market may depreciate further if the bulls fail to hold the $0.042 support.

Stellar Trade Signal
Instrument: XLM/USD
Order: Buy Limit
Entry price: $0.041
Stop: $0.035
Target: $0.08

Source: https://learn2.trade 

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The USDCHF Is Weakening While Selling Continues Beneath 0.9695 Level

USDCHF Price Analysis – December 31

After the Asian session, moving sideways near the level of 0.9695, the USDCHF pair lost its movement in the last hour and touched the lowest level since early November at 0.9662. At the time of writing, the pair fell by 0.23% per day at 0.9660 level.

Key Levels
Resistance Levels: 1.0231, 0.9833, 0.9695
Support Levels: 0.9659, 0.9600, 0.9541

USDCHF-Daily-DEC-31.png

USDCHF Long term Trend: Bearish

In a broader context, the long-term outlook stays bearish, as USD / CHF is in the range of 0.9659 / 1.0231. In any case, a decisive breakthrough of 0.9659 level is required to indicate the resumption of a downtrend.

Otherwise, more side trading may be recorded with the risk of another rebound. Meanwhile, a breakthrough of the level at 0.9695 support may aim at the level at 0.9541 support.

USDCHF-4-Hour-Dec-31.png

USDCHF Short term Trend: Bearish

The intraday bias in USDCHF stays on the downside at this phase. At the moment, a plunge from the level of 1.0027 may break below the support level of 0.9659.

On the other hand, a slight break of resistance above the level at 0.9739 may change the neutrality of the intraday bias and lead to consolidation first, before starting another decline.

Instrument: USDCHF
Order: Sell
Entry price: 0.9659
Stop: 0.9739
Target: 0.9541

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

Source: https://learn2.trade 

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EURUSD Rallies Maintain Upside Momentum Close To The Price Level At 1.1200

EURUSD Price Analysis – December 30

The EURUSD pair spiked to the highest level since mid-August at the price level of 1.1211 and entered the consolidation phase. At the time of writing, the pair was ranging near the price level of 1.1200, adding 0.2% per day.

Key Levels
Resistance Levels: 1.1515, 1.1450, 1.1280
Support Levels: 1.1178, 1.0981, 1.0879

EURUSD-Daily-Dec-30.png

EURUSD Long term Trend: Ranging

In the larger trend, the rebound from the level at 1.0879 is considered as a corrective movement at this stage. While anticipating a further advance, the growth potential may be contained by the recovery from the level at 1.1450 to 1.0879 to 1.1515.

While the downtrend from the level at 1.1450 (high) may continue at a later time. Nevertheless, a steady breakthrough of the 1.1515 level may weaken this bearish look and lead to stronger growth past the upside level at 1.1515.

EURUSD-4-hour-Dec-30.png

EURUSD Short term Trend: Bullish

EURUSD so far advances to the level at 1.1210 during today’s trading. Violation of resistance on the 1.200 level indicates the continuation of the entire rebound from the level at 1.0879.

The intraday bias is currently on the rise for a 100% forecast from the level at 1.0879 to 1.1178 from 1.0981 to 1.1280 in the following sequence. In any case, the short-term forecast will stay cautious as long as the support of the level at 1.1066 persists, howbeit a pullback occurs.

Instrument: EURUSD
Order: Buy
Entry price: 1.1178
Stop: 1.1066
Target: 1.1450

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

Source: https://learn2.trade 

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Cosmos (ATOM) Bounces But Struggles At $4.50 Resistan

Key Resistance Levels: $5, $6, $7
Key Support Levels: $3, $2, $1

ATOM/USD Price Long-term Trend: Bullish
Cosmos is now in a bull market. Currently, the coin is trading below the $4.50 resistance. In retrospect, the bear market was terminated at a low of $2 and the coin rebounded. The upward move was resisted at a $3.40 price level. The coin fell and retested the previous low at $2.

Cosmos is now in a bullish move as it broke the previous resistance at $3.40. The upward move was finally halted at the $4.50 resistance on November 11. Cosmos slumped to the low of $3 and resumed another bullish move to retest the overhead resistance. Presently the coin is facing price rejection at the overhead resistance.

ATOM/USD - Daily Chart

Daily Chart Indicators Reading:
The stochastic indicator is above the 50% range which indicates that the Cosmos is in a bullish momentum. The market is actually rising but the bulls are finding it difficult to penetrate the overhead resistance.

The simple moving averages are pointing northward indicating that the coin is rising. From the Fibonacci tool, it indicates that Cosmos is likely to reverse at the 1.272 extension level. Earlier a bullish candlestick body tested the 0.786 retracement level which gave a clue of the trend reversal.

ATOM/USD Medium-term bias: Bullish
On the 4-hour chart, the coin is also in a bullish move. The coin was facing resistance at $4 but after a retest, the resistance was broken. However, the bulls went up again but could not penetrate the overhead resistance. The market is in a sideways move below the $4.50 overhead resistance.

ATOM/USD - 4-Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 61 is above the centerline 50. This indicates the coin is in a bullish trend zone. The market is said to be in an uptrend. However, a bullish break at $4.50 resistance will catapult the coin to a high of $7.0.

General Outlook for Cosmos (ATOM)
Cosmos is in a bull market but yet to break the overhead resistance. Each time the bulls test the overhead resistance, the coin will fall or retrace to the next support. The coin is lacking buyers at the upper price levels. Possibly a bullish break at the overhead resistance will push the coin to higher price levels. Nevertheless, if the bulls fail to break the overhead resistance, the bears will take undue advantage to sink the coin below the support line. This will plunge the coin to its previous low.

Cosmos Trade Signal
Instrument: ATOM/USD
Order: Buy Limit
Entry price: $4
Stop: $3
Target: $7

Source: https://learn2.trade 

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Bitcoin (BTC) Breaches More Resistances, Attempts To Terminate Downtrend

Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000

BTC/USD Long-term Trend: Bullish
Yesterday, the bulls made an impressive move as the bulls reach a high of $8,400. The coin was resisted and the price retraced to a low of $7,800. The support is holding which was previously a resistance level. This is an advantage to the bulls. The bulls are making a fresh attempt to revisit the $8,400 resistance. Possibly, a break above the resistance will propel Bitcoin to reach a high of $9,200. Caution must be taken as the bears will not throw in the towel for the bulls to take control of price.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The bulls are attempting to break the downtrend line. The first time the bulls break the downtrend line, the price could not be sustained above it. This resulted in the retracement of the coin. In the second attempt, if the downtrend line is breached and the price is closed above it. Bitcoin will resume its uptrend move.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the bulls tested the resistance at $8,400 twice before falling to the low of $7,800. Bitcoin will need more buyers at this level to sustain the current momentum. On the upside, the bulls have to break above the resistance and the price is sustained above it.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin is now trading above the 25% range of the daily stochastic. This indicates that Bitcoin is in bullish momentum. On the upside, if the price breaks above the resistance and it closes above it. The uptrend will resume. Conversely, if the price breaks below the support line and it closes below it, the selling pressure will resume.

General Outlook for Bitcoin (BTC)
Bitcoin is making a positive move in the recent highs. The pair is currently battling the resistance at $8,400. Buyers need to overwhelm the sellers at the current resistance, for the price to scale through to the higher price levels. Traders should adjust their parameters if a breakout occurs.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,000
Stop: $7,500
Target: $10,300

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Gold Stays Constricted In A Restricted Trading Range Around $1550 Level

XAUUSD Price Analysis – January 10

Gold rose in price in response to the grim release of NFP in the US, although it lacked a strong follow-up from buyers and stayed within the trading range of the previous session. Over the past 24 hours, the yellow metal has been trading in a limited trading range near the level of $ 1,550.

Key Levels
Resistance Levels: $ 1640, $ 1625, $1611
Support Levels: $ 1557, $ 1540, $ 1517

XAUUSD-Daily-Jan-10.png

XAUUSD Long term Trend: Bullish

The yellow metal is consolidating on the previous resistance, unfolded by a horizontal support line, and also indicates further weakness while a continued decline may lead to a fall in gold to the level of $ 1,540 shortly.

However, if this level does not hold, the price of gold may likely go down during the next trading session. In this case, the yellow metal may fall beneath the $ 1,517.

XAUUSD-4-Hours-Jan-10.png

XAUUSD Short term Trend: Bullish

The recent fundamental surge managed to soon go to top the upper trend line of the pair, which reflects the jump in the yellow metal from 2017. However, the price immediately receded.

At present, we expect a push down to the price level of $ 1,517. A rebound from the level of $ 1,557.07 may cause the price to rise to the level of $ 1,575 and the level of $ 1,585.

Instrument: XAUUSD
Order: Buy
Entry price: $1557.07
Stop: $1517
Target: $1595

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 

Source: https://learn2.trade 

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No Sign Of Recovery As USDCHF Stays On The Low Level At 0.9680

USDCHF Price Analysis – January 14

At the time of composing, the FX pair was trading at 0.9683 level, dropping 0.25% per day after discovering support around 0.9670 level. The USDCHF pair recovered its daily losses and was last seen trading at 0.9683 level, where it remained virtually unchanged during the day.

Key Levels
Resistance Levels: 1.0231, 0.9841, 0.9770
Support Levels: 0.9659, 0.9600, 0.9541

USDCHF-Daily-Jan-14.png

USDCHF Long term Trend: Ranging

The trend stays neutral because the USDCHF is actively in the trading range, starting at 1.0231 level(high). The fall from the level of 1.0126 is held inside the pattern and may approach the level of 0.9600 (low).

In case of another increase, a breakthrough of the level at 1.0231 is required to indicate the resumption of an uptrend. Otherwise, further trading by the range may be recorded with the risk of another fall.

USDCHF-4-Hour-Jan-14.png

USDCHF Short term Trend: Bearish

USDCHF today drops significantly but stays above the level of the temporary low of 0.9659 level. Its intraday bias stays neutral initially. Although at a resistance level of 0.9770 intact, this trend stays bearish and a steady decline is anticipated.

On the other hand, a breakthrough of the level at 0.9600 can continue the general decline from the level of 1.0231 and approach the 100% forecast of the level at 1.0231 to 0.9659 from 1.0027 to 0.9600. However, on the other hand, a break of 0.9770 level may indicate a short-term decline and a change in the upward bias.

Instrument: USDCHF
Order: Sell
Entry price: 0.9680
Stop: 0.9770
Target: 0.9600

Source: https://learn2.trade 

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Stellar (XLM) Bounces, Uptrend Uncertain

Key Resistance Levels: $0.09, $0.10, $0.11
Key Support Levels: $0.06, $0.05,$0.04

XLM/USD Long-term Trend: Ranging
Today, Stellar is making a positive move to come out of the oversold region. On December 17, the coin fell to the low $0.042 but has risen to a high of $0.050. The price movement had been rather slow because of indecision candlesticks. The market has been characterized by small body candlesticks like spinning tops and Doji candlesticks which have been responsible for the consolidation.

XLM/USD - Daily Chart

Daily Chart Indicators Reading:
In its upward move, the bulls have broken above the 21-day SMA. XLM is likely to rise if the bulls break above 50-day SMA. The coin will rise if the price bars are above the SMAs. The MACD line and the signal line are below the zero line which indicates a sell signal.
.

XLM/USD Medium-term bias: Bullish
On the 4 hour chart, Stellar bounces at the bottom of the chart. The coin is making a series of higher highs and higher lows. Stellar is facing resistance at $0.050 price level. A break above $0.050 will catapult the coin to a high of $0.052.

XLM/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Stellar is in a bullish momentum as it trades above 40% range of the daily stochastic. The bullish momentum is fluctuating. On the ascending channel, if price breaks above the resistance line and closes, the stellar will be in an upward move. Conversely, a break below the support will attract selling pressure.

General Outlook for Stellar
Stellar is still in a bear market. To come out of the downtrend zone, the bulls have to break the resistance at $0.060. Meanwhile, the Fibonacci tool indicates that XLM ought to have reversed at the 1.272 extension level. Nonetheless, the selling pressure of Stellar has been overdone. Buyers ought to emerge as the coin is oversold.

Stellar Trade Signal
Instrument: XLM/USD
Order: Buy
Entry price: $0.050
Stop: $0.042
Target: $0.06

Source: https://learn2.trade 

Edited by analyst75

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Your All-Round Guide To Security Token Offerings

Security token offerings (STOs) are one of the most revered investment options in the crypto space at the moment. It has even been termed the “future of fundraising”.

But what exactly are STOs and what is the rave all about?

This article aims to break down STOs, what it is all about, and how it can be beneficial to you.

What Exactly is a Security Token Offering?
STOs, simply put, provide a means of tokenizing fungible financial assets such as stocks, bonds, and REITs, and introduces the tokens to the public through regulated channels.

STOs are a lot like ICOs as they generally involve the same processes. However, the differentiating factor between STOs and ICOs is in the tokens being sold. With ICOs, the tokens are usually non-descriptive and could range from anything digital currencies to utility tokens. With STOs however, the token is a “security”, meaning that it is exchangeable and possesses a set monetary value.

STO-1.png

Breakdown of Security Tokens
Security tokens function as digital versions of the assets they represent. Here’s a list of some popular security token representations:

1- Capital markets: Firms can convert their shares into tokens, allowing investors to own parts of the firm. In some cases, owners of tokens receive dividends and can execute votes on the affairs of the firm.

2- Equity funds: Equity funds can also tokenize their shares for sale.

3- Commodities: Commodities like gold, natural gas, coffee can be tokenized.

4- Real estate: The equity of this asset class can be tokenized, much like how REITs function.

STOs do not change the underlying securities, instead, it makes these assets more readily accessible on a digital platform.

Unlike other digital assets, security tokens can only be traded on certain regulated exchanges. Some exchanges require interested investors to meet some set qualifications.

Advantages of STOs
STOs are formulated with regulatory-compliance in mind, unlike ordinary token sales. Security tokens provide its owners with several legally binding rights. Some security tokens even bestow its owners with rights to dividends or other defined streams of income.

Security tokens are also beneficial to their issuers. From the onset, the entities issuing the tokens are aware that their tokens are being purchased by accredited and verified investors and so, they don’t have to worry about the credibility of their investors.

Other advantages of STOs include:

1- It is adequately regulated: Entities issuing security tokens must operate under the guidance of designated regulatory agencies in the region like SECs and FTCs.

2- You can rest assured that STOs won’t falter in the future: Unlike ICOs that cannot be guaranteed, STOs are sure to always deliver because it is properly regulated.

3- STOs offer great convenience: Procuring security tokens is easy, straightforward, and stress-free. All you need to do is to adhere to the STO requirement in your jurisdiction and you’re good to go.

4- It can be programmed: Security tokens are programmable and can be facilitated by smart contracts.

5- Automated dividend disbursement and voting: Some security tokens are structured to send dividends automatically through smart contracts. Also, some security tokens provide the bearer with exclusive voting rights in the affairs of the entity offering the tokens.

6- It is a globally accessible investment vehicle: Investors across the globe can procure security tokens regardless of their location.

7- It is not susceptible to manipulation: Considering the mode of operation STOs are run by, big players cannot manipulate its movements.

8- STOs are very liquid: It is a very promising investment option as it has an impressive liquidity quality and can be traded easily.

With benefits like these, STOs are for sure transforming the fundamentals of the financial sphere.

Disadvantages of STOs
As with every other form of investment, security tokens has its limitations and shortcomings. Some of these limits are:

1- It is considerably more costly than utility tokens: STOs, unlike ICOs, hosts many organizations in their fundraising campaigns. Also, regulatory fees are not cheap which makes it more capital-intensive to host STOs.

2- Investor Qualifications: Countries like the US have certain qualifications an investor has to scale before becoming eligible to engage STOs. According to the SEC to be an “Accredited investor”, you must have an annual income rate of $200k and above or a minimum of $1 million in the bank.

3- Specific trading conditions: STOs can only be traded on certain designated exchanges. Also, these tokens are time-bound meaning that you are allowed to trade these tokens between investors for a set period after the STO.

The Howey Test
Usually, tokens are said to be securities, by law, when they pass certain thresholds. One such way to identify a security instrument is by applying the “Howey Test”.

But first, let’s look at a piece of quick background information on how the Howey test came to be. In 1944, a citrus plantation called the Howey company of Florida leased out a large portion of its land to several investors in a bid to raise funds for much-needed developments.

The buyers of the land were not skilled or versed in citrus farming in any way and decided instead to just be “speculators” and let the experts do their jobs. The lease was made on the premise that profits would be generated for the investors by the lessor.

SEC-sto.png

Not long after the business transaction the Howey company was sanctioned and accused by the United States SEC of failing to register the sale with the authority. The SEC maintained that the company was dealing with unregistered security. Howey denied the claims however, assuring that what it offered wasn’t a security.

After much debate, the case ended up in the Supreme Court, which later ruled in favor of the SEC that Howey’s land leasing were undoubtedly securities. It remarked that investors were purchasing land mainly because they saw an opportunity to make a profit off the deal. Howey was then ordered to register the sale.

This was the story of the enactment of the Howey test.

Today, per the Howey test, anything is deemed to be a security if it satisfies the following criteria:

1- The investment included money.

2- The investment was made on an enterprise.

3- Profit will be made from the efforts of the providers of the investment.

The Howey test has become a stronghold name in the crypto space. In 2017 and 2018 (during the “Heydey boom”), many ICO providers were completely consumed with scaling the Howey test as it was a major determinant used in ascertaining the legality of an ICO by the SEC. Failure to pass the test meant the offering was illegal and was sanctioned by the authorities.

Some ICOs even advertised their tokens as investment instruments that had no value, describing their tokens as “utilities” used only for interactions on the platform.

The Inception of STOs
The very first STO was released by Blockchain Capital on the 10th of April 2017. The release pooled about $10 million in one day.

Several STOs have been released following the first event including tZero, Sharespost, Aspen Coin, Quadrant Biosciences, and many more. STOs have since gained widespread acceptance and relevance in today’s market.

Understanding the Distinction Between Security Tokens and Tokenized Security
Confusing security token for tokenized securities is a common trap that people fall into. The main distinction between the two is that the former is usually a recently issued token that functions on a distributed ledger system while the latter is just a digital manifestation of pre-existing financial instruments.

Apart from similarities in appearance and nomenclature, security tokens have absolutely nothing in common with tokenized securities.

What Entities are Involved in an STO Issuance?
Assuming a business entity plans on issuing security tokens as an embodiment of equity in its establishment, the next necessary step for that business would be to involve certain players and follow certain directives.

It has to formally contact an issuance platform to serve as a medium for issuing the tokens. Popular issuance platforms include Polymath and Harbor, which consist of service providers like custodians, broker-dealers, and legal entities to carry out secure processes.

Who Can Invest in STOs?
STOs are available to the general public for the taking, regardless of location. However, as mentioned previously, the US has certain rules guiding STO investments.

In the US, it is mandatory to be an “accredited investor” before you can invest in this instrument. An accredited investor is an individual with an annual cash flow of $200k and above for at least 2 years or a net worth of $1 million and above.

More nations are starting to adopt the United States’ classification method and have begun restricting certain classes from investing in STOs.

It is advisable to always research on the STO rules and regulations of the jurisdiction you’re planning on investing with.

Final Word
STOs provide businesses with the prospect of raising funds in an easy and regulated setting. It gives both investors and issuers a good deal of benefits, while also ensuring insurances against fraudulent or malicious practices, unlike ICOs. Issuers are not limited to any industry, they can vary from several sectors including real estate, VC firms, and small and medium enterprises.

Moving forward, we will likely witness prominent firms venture into the STOs.

 

Source: https://learn2.trade 

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Bitcoin: Upcoming Halving And What To Expect

Bitcoin’s upcoming halving will be one of the most followed crypto-related occasions in the year 2020. Thousands of cryptocurrency enthusiasts will be observing the markets eagerly to witness what effect this year’s halving will have on the cryptocurrency.

Many believe that the occasion would have a positive effect on BTC’s price as has been observed in the past.

On the other hand, some are expecting the price to drop dramatically after the occasion.

Whatever the result may be, it is apparent that this occasion will be a defining juncture for Bitcoin.

In this review, we breakdown what the Bitcoin halving is all about, some effects of this occasion, historic occurrences, and what to anticipate from this year’s halving occurrence.

Bitcoin was built on a system that mandates regular halving (also known as Halvenings) to sustain its value. The halvings are programmed to happen every 4 years. Already, Bitcoin has witnessed two halving processes, the first in 2012, and the other in 2016. The next halving process is scheduled for the 20th of May 2020.

Bitcoin’s Value Preserving Strategy
Bitcoin runs on a deflationary economic model which ensures that over time, lesser and lesser Bitcoin tokens will be created until finally, the creation of new Bitcoin tokens will end.

BTC’s total supply is capped at 21 million, meaning that it is impossible to have more than that exact number of Bitcoin token in circulation at any point in time. It has been estimated that the very last Bitcoin token will be mined in the year 2140.

Bitcoin’s deflationary model predisposes it to scarcity which increases in demand, thereby causing its value to increase as well.

This model is different from traditional fiat which is based on an inflationary model, this means that banks can instruct for the printing of more banknotes at will. This is not an ideal practice per se as a boost in the volume of banknotes in circulation could result in the devaluation of that currency.

Bitcoin-Block-Reward.png

Bitcoin’s “Block Reward” System
New Bitcoin tokens are pumped into the market through a popular process known as cryptocurrency “mining”. Bitcoin miners get rewarded with a Bitcoin “block” allotment every time they successfully solve transactions. The blocks are allotted by the Bitcoin algorithm.

The block rewarding process happens every ten minutes. So in fact, ten minutes from this moment, new Bitcoin tokens will be created.

Mining is not an easy process. It requires a certain level of expertise, specific hardware, and a serious quantity of electricity.

After the inception of Bitcoin, the first mining reward was fifty Bitcoin. This meant that every ten minutes, a Bitcoin miner received fifty Bitcoin tokens for solving transactions.

That number has since been halved, twice, and is now at 12.5 Bitcoin token per block reward. By May this year, the halving will bring that figure down to 6.25 Bitcoin token per block reward.

This feature has been pre-programmed into Bitcoin’s system.

What This Could Mean for Mining
Lesser block rewards are not the only reason Bitcoin is scarce. It has gotten significantly harder to mine Bitcoin and receive rewards. This is because mining is now more difficult as more miners are entering the system thereby increasing competition.

Consequently, an increase in competition means miners require more sophisticated tools to solve cryptographic Algos.

Over the years, miners have created what is known as “mining pools” to better handle the rising competition of mining. Mining pools are a network of miners, collectively working towards achieving block rewards.

Block rewards in mining pools are distributed according to the percentage of effort put into earning a block.

Improved Stock-To-Flow Ratio
Halvings have several profitable impacts on Bitcoin. One such effect is that it boosts the Stock-To-Flow ratio of Bitcoin.

A commodity’s STF ratio is calculated by dividing the quantity of the asset held in reserves, by the quantity manufactured in a year. The greater the STF ratio, the lesser the annual inflation on that asset.

Commodities like gold possess a very impressive STF ratio as its available quantity is limited.

Presently, Bitcoin has a significantly lesser STF ratio, unlike gold. Regardless, more halving occasions will boost the Bitcoin’s STF ratio. It is even believed that someday, Bitcoin will surpass gold in the STF ratio rating and will be an even better store of value. This is probably why Bitcoin is dubbed “digital gold”.

After-Effects of Previous Halvenings
2012’s Halving
The first Bitcoin halving happened on the 28th of November. On that day, the cryptocurrency recorded a 6.5% trade range.

Regardless, to the surprise of many, the price remained at a consolidated state months after the occasion. This was partly because Bitcoin was still in its infancy and so, not many people were engaged with it. Also, media coverage at the time was not what it is today, which means many people were not informed of what was going on.

Halving-Effect.png

Based on the information on Bitcoin’s BNC Liquid Index, the price of BTC attained a high of about $32 on the 8th of June 2011.

The price of BTC never broke above the $32 mark until the 28th of February 2013 (4 months later), where price witnessed a climb to $260 after which a drop was experienced and the price stayed below that level for several months.

Fast forward to the 30th of November 2013 (close to a year after the 2012 halving), Bitcoin rallied dramatically and peaked at $1,167, which was a whopping 9,686% increase from the initial price of $11 on halving.

2016’s Halving
On the 9th of July 2016, the second halving, the price peaked at $664 but did not maintain that uptrend instead fell to $626 on the same day.
Subsequently, the price continued on that downward trajectory for about three months.

However, things started looking up for Bitcoin from the 27th of October 2016 when price closed above the previous halving’s high of $664.

Bitcoin later proceeded to smash its last all-time high of $1,167 on the 23rd of February 2017. This spike started the famous bull rally of 2017 through 2018, which witnessed a peak at $20,000 sometime in December 2017.

2016’s halving shot Bitcoin’s price from $664 to $20,000 which was a growth of 2,912%.

Possible Outcomes of this Year’s Halving?
In the crypto sector, the Bitcoin halving is undoubtedly among the most talked-about and anticipated occasions of the year.

Presently, there are mixed expectations as to what the outcome of the 2020 halving may be.

Many in the crypto sector are very optimistic and believe that, just as in the past, the price will soar dramatically either before or after the occasion.

Creator of Kraken, Jesse Powell expects the price of Bitcoin to rise close to $100k or 1 million after the halving.

The CTO of Morgan Creek Digital Assets also shares the belief of Jesse and expects Bitcoin to reach the $100,000 mark by 2021. He says that scarcity is a driving force for the demand of any commodity. He explains that the 2020 halving will cause Bitcoin to be more scarce.

Other crypto players believe that this year’s occasion will not have a similar trajectory with past occasions and would, instead, mar the price of Bitcoin.

Another possible scenario that has been observed over time is the “buy and dump” case. This scenario usually plays out when there is a highly anticipated occurrence. It works exceptionally well when the upcoming occasion is sure to have a quantifiable effect on supply and demand dynamics.

The price of the asset in question experiences a huge spike just days or a few weeks to the main event. This transpires because investors stock up on the asset towards the event. After the event, however, the price of the said asset drops significantly.

This kind of activity has transpired frequently in the cryptocurrency space. One such occasion was the Bitcoin futures trading releases for the CBOE and CME.

Just a few days to the CME’s release, the price of Bitcoin rallied from $6,400 and peaked close to its all-time high of $20,000 in a day. Not surprisingly, the price dropped considerably in the period that followed those releases.

Furthermore, some cryptocurrency experts believe that the aftermath of the halving has already been priced in. It has been observed that demand is “missing” in the Bitcoin market, this could be a clear indication that the halving has been priced in.

Usually, months before a halving, a boost in demand and price of Bitcoin is always noticeable. This time, however, no increase can be observed in neither of the stated areas.

In this case, it could lead to a lateral trading period which might be a good thing for traders.

At the moment, Bitcoin is still struggling to break above the $7,200 mark and there are no signs of a reversal happening soon.

Whatever the result may be one thing is for sure, the price of Bitcoin is set to experience drastic changes this year.

 

Source: https://learn2.trade 

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Bitcoin (BTC) Shows Strength, Sustains Hope On Uptrend

Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000

BTC/USD Long-term Trend: Ranging
After the rejection of  price at $9,200, the downward move was extended to a low of $8,250. Analysts were of the opinion that Bitcoin will bounce if price falls and tests the low of $8,250. From every indication, Bitcoin is making a solid upward move as the coin approaches the overhead resistance.

Our bullish expectation is that the price will break the resistances of $8,800 and $9,200. Then the same momentum will be extended to the $10,000 price level. However, the bears may want to put up a fight to defend the $9,200 resistance. If the bears defend successfully, Bitcoin will be compelled to a sideways move.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are pointing northward indicating the upward move. The 21-day SMA acts as a support to Bitcoin. Meanwhile, MACD provides a buy signal for Bitcoin as the MACD line and the signal are above the zero lines.

BTC/USD Medium-term Trend: Bullish
On the 4-hour chart, the price breaks the support line of the horizontal channel. Later Bitcoin finds support at $8,250 low. The $8,250 low was well supported by the bulls as the coin makes a bullish move. The price is approaching the resistance at $8,800. If successful above $8,800, the price will rally above $9,200.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin has risen to level 66 of the daily Relative Strength Index period 14. This signifies that the coin is in a bullish trend zone. However, if the RSI rises above level 70, Bitcoin will be said to have reached the overbought region of the market. Then we may experience a fall in BTC price.

General Outlook for Bitcoin (BTC)
The upward move in the last 24 hours is a positive development as Bitcoin bounces at a low of $8,250. All the indicators are in the positive direction of the coin. However, the RSI is level 68 indicating that the coin is approaching the overbought region. In other words, the upward move may soon be interrupted. After a retracement, the coin will resume its upward move.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,738
Stop: $8,500
Target: $9,200

Source: https://learn2.trade 

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GBPUSD Retreats Beneath The Level At 1.31 Amid Greenback’s Resilience

GBPUSD Price Analysis – January 26

GBPUSD is trading beneath the 1.31 level after reaching a new high of 1.3172, as the dollar’s resilience did not allow the pair to gain momentum. The US dollar is gaining strength in all directions.

Key Levels
Resistance Levels: 1.3600, 1.3514, 1.3280
Support Levels: 1.3000, 1.2582, 1.1958

GBPUSD-Daily-Jan-26.png

GBPUSD Long term Trend: Bullish

GBPUSD recently recovered to the level of 1.3172 but has since lost momentum. This week’s initial bias is neutral. On the other hand, in the past, the level of 1.3172 may give way to the resistance level of 1.3280.

A breakdown there may approach the test at 1.3514 level. On the other hand, beneath the level of 1.3050, repeated testing of the recovery part of the level of 1.1958 to 1.3514 at 1.2900 levels may occur.

GBPUSD-4-hour-Jan-26.png

GBPUSD Short term Trend: Bullish

Estimated intraday bias in GBPUSD may initially become neutral with a temporary top already structured at 1.3172 level. Further growth is moderately favored, while the immediate support level of 1.3050 remains unchanged.

The Fx pair remains bullish, trading past the level of 1.3072, a critical barrier is found at levels of 1.3118 and 1.3172. Besides, the Fx pair remains bearish, trading past the 1.3050 level, critical support has been found at 1.3000 and 1.2970 level.

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

Source: https://learn2.trade 

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