Tag: bitcoin

All bitcoin related articles are found here. Educative, informative and written clearly.

The Bitcoin price may rise towards $8,000 next week?

Bitcoin rose above $7.402 and market cap moved upward by +0.89% to $137.68 billion

The Bitcoin price may rise further since it has continued being above the level of $7,000. That is important not from psychological only. Over the weekend, it traded between the $7.100 and $7.200 and by now has grown to reach a bit over $7.402 according to the Coindesk and at the moment of writing,

The weekend began with cryptocurrencies retracing, but it ended with a rally. Bitcoin (+4.5%), Bitcoin Cash (+4.14%), Ethereum (3.7%), and Litecoin(+4.73%) were the best among the top ten cryptos.

That caused crypto analysts to be hopeful about the short-term price action of Bitcoin. One of them suggests a price range to which Bitcoin may rise this week.

@CryptoMichNL wrote:

“Currently at potential local resistance. Wouldn’t be surprised with the continuation of ranging for the coming days, before we make another push to $7,800-8,000 resistances later next week.”

Today ( December 23) followed by another tweet:

Last week, the famous investor and BTC bull Tim Draper had stood by his previous forecast about Bitcoin popping $250,000 by the end of 2022 or by early 2023.

And CNBC’s crypto expert Brian Kelly said that technically this price action is possible and described how it could befall.

Brian Kelly said:

“It sounds bizarre but it wouldn’t be out of the realm of what Bitcoin has done in the past.”

Kelly showed a chart of Bitcoin price movements since 2013 and pointed out that since then Bitcoin price has been moving within a rising channel. The top of that channel, Kelly says, is right about $200,000 – $250,000.

As for the fundamentals that could lead to this price leap, Brian Kelly calculated that by late 2022 or early 2023, Bitcoin could take half of the market share from all the world’s gold and by that time the market cap of Bitcoin should be almost $4,5 trillion.

Could #bitcoin hit $250,000 in the next two years? @BKBrianKelly and @fundstrat‘s Tom Lee help us break down longtime venture capitalist Tim Draper’s bold call. pic.twitter.com/dGW4nJL86f

— CNBC’s Fast Money (@CNBCFastMoney) December 20, 2019

If that arises, Kelly said, Tim Draper’s prediction “isn’t too far out of whack.”

The Bitcoin market cap moved upward by +0.89% to $137.68 billion and trading volume is at $27.23 billion.

Bitcoin dominance increased lightly and is now 68.65%.

Bitcoin has broken the sideways movement after the bullish impulse that made last December 18. The price moved up from $7,150 to exceed the $7,650 value but fall again to $7.402.

This $500 movement was the confirmation of the trend reversal that was expecting. Will the move proceed until it touches the upper descending trendline at $7,800? We’ll see.

23rd December 2019
BTC Price Will Surge Again

2 min read

Yes, the Bitcoin prices displaying a massive drop on Tuesday. Well, there is good news too. Crypto investors continue bullish! So the BTC price will surge again.

As BTC recorded a huge fall and fell about 13%, investors and traders persist optimistically. They expect the bull market to recover quickly.

Bitcoin price made a sharp drop yesterday (September 25) falling almost 16%. The daily open was at $9,691 but recorded a new low at $8,164. The price support was broken at $9,090 leaving the area that it has been trading in since June.

In doing so, price broke strong support at $9,090 and exited the area that it has been trading in since June. Bitcoin’s price action continues bearish under this scope.

But nothing is finished. Today’s chart (at the time of writing) shows some uptrend. A small one but still.

The larger picture reveals regular price action with prior corrections.

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Traders-Paradise wrote about the second-largest German exchange in Stuttgart which started Bitcoin trading. Also, Bakkt starts and SoFi, a finance management firm is launching a crypto trading platform.

Are people still micro wise? Well, not all thankfully. BTC price will surge again.

The BTC/USD pair is trading at the $8,407 after hitting a low at $8,125. In the past two days, the price has passed below the SMA200. Dangerous? Yes, but the typical race for Bitcoin. For unexperienced in Bitcoin, the bullish momentum will continue as long as the daily close is above the long term average. The indicator stays on the bullish side of the indicator. You can check it.

BTC/USD needs strong support levels, instead, it may fall even more since BTC/USD had another heavily bearish day on Wednesday. The disturbing element is that the daily confluence indicator doesn’t show any support levels until $8,100.

But even if it goes lower its still a good entry for longs. It is expected the volume further fails on a macro scale. But the price may consolidate if the trading starts again.

Bitcoin’s price is a distraction from the value. Everyone was yelling about Bitcoin’s drop past two days. What is about today? It has recovered.

Don’t judge based on hash rate data. It is an estimation. It isn’t exactness. Until traders start to trade it again the price of Bitcoin may stay on the low level. The point is, Bitcoin may drop slightly more in the next few weeks, with frequent ups and downs but to the end of the year, it may surge again, and more than anyone can expect. That’s the nature of Bitcoin and the beauty of the game

26th September 2019
Boerse Stuttgart Exchange Has Started a Regulated Trading Bitcoin

Boerse Stuttgart exchange plans to add litecoin, ethereum, and XRP euro pairs to the end of this year – UPDATED

By Guy Avtalyon

Germany’s second-largest stock Boerse Stuttgart exchange (BSDEX) has started a regulated trading venue for digital assets, the company said. It is a fully regulated digital asset exchange under the German Banking Act, said the company in a statement. In the beginning, BSDEX will trade one pair, only the bitcoin-euro.

In late 2018, the company revealed that it wants to launch a fully regulated digital asset exchange. In the same announcement, BSDEX stated that institutional and retail investors from Germany will have the chance to trade, but later it will be opened for the investors in the whole EU. The trading will be accessible 24/7 like other exchanges on the globe.

According to CoinDesk, Boerse Stuttgart exchange plans to add litecoin, ethereum, and XRP euro pairs, besides Bitcoin, to the end of this year.

“The market in cryptocurrencies is worth billions, and more digital assets will emerge on the basis of blockchain,” CEO Dr. Dirk Sturz revealed in the statement. “Our goal is to build up the leading European trading venue for those assets.”

Boerse Stuttgart Exchange partnered with SolarisBank

“BSDEX will give retail and institutional investors direct access to digital assets and provide flexible and relatively low-cost trading. We believe blockchain is set to bring about significant changes in the financial industry, and we want to leverage its potential to create the trading venue of the future,” stated Peter Grosskopf, CTO at BSDEX.

About a year ago BSDEX announced it will launch the ICO platform and began to trade ETNs and litecoin.

No Brokers Needed

According to the press, the trading won’t need brokers. The traders will have access to the platform directly. That is nice, but they limited userbase and restricted trading options. For now, traders may set the market and limit orders, but ASAP the rest of the possibilities will be accessible.

“Earlier, BSDEX has launched Bison. Bison is a mobile app that lets users trade Bitcoin, Ethereum, Litecoin, and XRP for euros. BSDEX’s trading platform is a sign of its new strategy to open the path for the trading of tokenized assets,” the reports say.
This is important news for anyone who would like to invest or trade cryptocurrencies. A true step forward.
Our concern is restrictions and limitations. But let’s not be so suspicious. What about giving them a chance? It looks like a reasonable decision. But will keep an eye on it.

What we can say is that Bitcoin’s adoption continues. Nice venture.

LAST UPDATE

From 25 February 2020, new ETPs that track the inverse value of Bitcoin is available on the Boerse Stuttgart Exchange. It is still connected to the Euro.
This tracker product’s value represents the inverse performance of the Bitcoin as an underlying asset. Meaning, when the price of Bitcoin drops, the ETP increases, minus management fee for daily trade. The product is completely hedged with the underlying asset 1:1. The launch of the first inverse is presented as a natural extension to the existing unleveraged range of crypto ETPs. Boerse Stuttgart stated that it offers a bigger choice to investors. This choice lies in the possibility for investors to better manage the grown volatility and changes in the cryptocurrency markets.

24th September 2019
We Have Reasons To Believe That Bitcoin Is Back On Top

2 min read

Bitcoin trend indicator shows almost the same pattern as in the middle of 2016. It was just before Bitcoin started its bull run and led BTC into the spotlight. Only a year and a half later, Bitcoin hit its highest price at the end of 2017.

This Bitcoin trend indicator is noticed by one of the most respectable analysts known as PlanB.

PlanB pointed out the Bitcoin trend indicator shows that the current price performance almost exactly matches a pattern from the mentioned period.

Bitcoin’s relative strength index is similar to its last bull run

Does the current setback really mean a big uptrend?

PlanB is very important and one of the most respected crypto analysts. He has made comprehensive research into Bitcoin price. Moreover, he stands behind the Bitcoin stock-to-flow model. A frequently quoted by extremely honored people from the financial sector.

PlanB had a great influence and still has, on crypto-skeptics. It was like a miracle watching how he turned skeptics into fans. For example CNBC’s Squawk Box hostJoe Kernen.

PlanB’s fresh analysis, the chart of Bitcoin’s Relative Strength Index (take a look again) shows a forceful indicator.

Can you see an extraordinary similarity? Just compare the year 2016 and nowadays action.

After a decline in RSI from the high 60s to low 60s, BTC RSI then climbs higher to approximately 75, stands there for a while to take a breath, then proceeds to rise over, crossing out just a bit below 90 on the RSI scale.

The point of this similarity is the strength of Bitcoin to stay on this level long enough to take a new breath and start a true bull run to the highest high.

The history should replicate itself.

Bitcoin is recognized as a safe asset. BTC does not connect to any single country’s policy determinations. Bitcoin is indeed a great advantage in these times of economic uncertainty.

Don’t miss THIS! LEARN HOW TO MONETIZE BITCOIN

Check your knowledge about crypto

30th August 2019
Who is Satoshi Nakamoto?

Who is Satoshi Nakamoto? This is the beginning of the fairytale.

What Nakamoto revealed about himself in Part 1 of “My Reveal” is disappointing.

This revelation announced with fanfares and bongos but looks like another marketing campaign. First of all, it is structured as billion call-to-trust-me campaigns or buy-this-shit-because-I-know-you-are-stupid.

This self-declared Satoshi Nakamoto overpromised. And the most interesting part of all this, no one in the crypto ecosystem isn’t surprised.

We still don’t know his/her real name nor we can see the photo. Will it come with Part 3? Or maybe never?

This “big reveal” is more a “big lie” because we are still far away from knowing who is hidden under the name of Satoshi Nakamoto.

All we know is that his nickname is Shaikho and that is Pakistani name. He kidded that he’ll reveal his real-life identity on August 20.

That should be Part 3? Right?

Who is Satoshi Nakamoto?

Let’s see what this Satoshi Nakamoto revealed about himself.

Under the title “My Reveal”, this “Satoshi” gave his alleged origin story, some fairytale about the Bitcoin’s name background. Now, we know his ideology (a very important matter for Bitcoin’s existence, indeed). Oh, yes! This person, or whoever created that blogpost, pointed the relationship to Bitcoin pioneer Hal Finney (already known fact, so nothing new).

“Satoshi” now allegedly lives in the U.K. and he is the son of a banker who had worked at a Pakistani multinational bank. And his name is unknown too.

Some of his/her claims are so similar to the declarations of Craig Wright, the other self-proclaimed Nakamoto.

For example this part from “My Reveal”:

“Today, when Bitcoin is understood by the advances of technology, but at the same time is being hijacked by greed, I feel I have a duty to work hard and make my creation better and take its vision to the next level.”

And this so romantic tale about how Bitcoin got its name. That has to touch our souls, right?

Take a look at the logic behind this reveal. Cryptocurrency analyst Ledger Status noted that as Satoshi was a master of logic, and the only way he would truly reveal himself is by signing the Bitcoin genesis block.

Also, the @BTC Twitter handle stated that “Anyone that tells you they are Satoshi Nakamoto is a scammer”.

Do you remember how a very alike “reveal” happened but was nothing more than a stupid marketing campaign?

On Friday, a lot of paid press releases were issued arising from a company named Satoshi Nakamoto Renaissance Holdings. A company’s big “reveal” happened on Sunday, August 18.

And we got it. Part 1 of “My Reveal” by still self-proclaimed Satoshi Nakamoto. We yet don’t have any reliable evidence that it is he or she, the creator of Bitcoin.

We are suspecting that part 2 will be something better and provide us a closer insight at who Satoshi Nakamoto is. First of all, we have one simple question: How he/she has lost access to the coins and cannot move them?

What if all this is another marketing campaign with the foggy goal? Maybe some money-need can be behind this. What do you think?

Okay, we will wait for the end of this fairytale. Maybe, they’ll be happily married.

19th August 2019
Satoshi Nakamoto to Reveal Identity

Who is a real Satoshi Nakamoto?

By Traders-Paradise Team

Who is Satoshi Nakamoto? What is the origin of the iconic pseudonym? Who is behind it? How Bitcoin got this name?

Curiosity will probably be satisfied soon. All we have to do is to wait for the next several hours. And to check www.SatoshiNRH.com where Nakamoto plans to reveal his/her or group’s identity under the topic “My reveal”. Also, the address where you can check it and read it is www.ivymclemore.com.

Satoshi Nakamoto’s silence will be broken on Sunday, August 18, at 4 pm EDT (Eastern time zone).
The promise or decision came after 10 years of anonymity and creating one of the biggest mysteries in the past decade.

Our source claims that Nakamoto will reveal his real identity but in this three-part series he will reveal his education, origins, professional education. Also, it will be interesting to find out why his 980,000 bitcoins are still untouched.

All about Satoshi Nakamoto

Nakamoto will explain the role of his dedication to Chaldean numerology and how that influenced his decision to create Bitcoin.

The enigma is why he decided to reveal all these things including his identity today, August 18, on the day when he registered bitcoin.org through AnonymousSpeech.com. But he promised he will explain
The grand finale or culmination of the revelation of this secretiveness should happen on Tuesday in the third part. That will be an introduction of Tabula Rasa, Nakamoto’s vision for Bitcoin’s rebirth all along with the full announcement of his identity.

So, let’s say the first two parts on Sunday and Monday, are for warming the curiosity.

According to Ivy McLemore & Associates:

“Indicative of the compelling evidence he presents in each part of the series, Nakamoto will illustrate the role that ciphers and encryption-related to his devotion to Chaldean numerology played in many decisions in his creation of Bitcoin.”

Bitcoin code

So, we will see.

We found interesting reactions to this news. Forums are burning, social networks too. Everyone has some top secret info. We will point just a few of them:

“Satoshi” is most likely a state, intel or oligarch level private entity that will never be revealed and is likely not just one individual considering the bitcoin paper release coincided with the Great Recession.
Great Recession cliff was 15 Sept 2008.

Bitcoin paper was first published on 31 October 2008.

Even if “Satoshi” was to do a transaction I’d figure the person would be a front person for that entity anyways. The engineers that built it for this entity are already probably suicided or intel themselves.”

“The fact the entity hired a PR firm and has the sole goal of pushing a new company/product, even if it were the real person, means it is not the real person.”

BTW, this is clever, “Ivy McLemore & Associates” is a marketing agency.

Never mind, the only several hours are between our questions and his answers.

Traders-Paradise will also follow @SatoshiNRH on Twitter.

And we will all know if this is a marketing trick or real reveal of a mysterious identity the father of Bitcoin.

18th August 2019
PlusToken The Biggest Scam In The Second Part of 2019

3 min read

PlusToken was a classic Ponzi Scheme. Its operations were held in Korea, but also in the Chinese market. How Traders-Paradise is sure it was a Ponzi scheme?

PlusToken was founded in 2018 and announced high returns at various discount percentages for most active members. What does it mean? To really have the right on rebate, members were obliged to bring more and more newcomers and then would climb to the higher levels. A classic Ponzi.

At the beginning of this year, those criminals declared to have more than 10 million members.

OMG, how many naive people! Greedy? Just a false number? Everything is possible. The fact is that those scammers snatched $3 billion from their members. But despite the fact they escaped from the law, their website is still alive as much as their social networks accounts.

Okay, they didn’t have enough time to wipe off everything. More important is to save the neck and fat wallet.

“Mr. Leo”, the co-founder of PlusToken

PlusToken scammed about 10 million investors of $3 billion.

Actually, withdrawals on PlusToken started to stumble in June.

The scammers declared some technical problems as the reason. For everyone with less greed, promises given from these scammers should sound impossible to be executed. What did they promise? Nothing! No investment strategy, no valuable information, only 6 to 18% returns per month plus referral commission.

Recent research exposed PlusToken as scammers, who were acting outside the internationally used crypto social media. They were a lonely player succeeded to raise billions. On the illegal way. The police in China took some action but it wasn’t finished with arrests or investigation.

The criminals with an offer of exceptional earnings succeeded to fill their own wallets with a Bitcoins.

Dovey Wan, the co-founder of Primitive Crypto and one of the more influential Twitter accounts, brought the PlusToken story to the attention of a wider audience.

How do they stay so long unrevealed?

The essential reason is lack of communication and the existence of rivalry between Western and Chinese crypto-fans and exchanges.

The PlusToken actions were mostly ignored. The other reasons could be using different social media or the presence of language barriers. That held Asian investors to the hell.

These scammers were not modest.

Only a few weeks ago just a few days before their escape, PlusToken announced that it’s expecting to have over 10 million members to the end of 2019. Two or three months earlier they said to have 3 million users. It is obvious that they boosted those numbers because they never showed any relevant evidence for those words. Moreover, they operated under the radar, you cannot find so many details or information about the people behind this scam. As we mentioned, at the beginning of this article, some co-founder is mysterious Mr. Lee.

Take a look at the image above again.

When the scam was revealed messaging platforms reveals members who said they’ve lost up to $5,000. If you take a look at some tweets you will find some members from China who had contacted Hunan province police. How all of this will end is still unclear, but something has to be said: never be greed, use the proven exchanges and wallets with an excellent reputation. Every time when you notice that someone is offering you enormous returns, run away from such.

At any time you can check if some exchange is good in Traders-Paradise’s WALL OF FAME
The scammers are in our WALL OF SHAME

16th August 2019
Bitcoin dominance rate – Why some are concerned?

Why this question about the Bitcoin dominance rate now?

By Guy Avtalyon

The bitcoin dominance rate is a very important indicator of crypto market preferences. It is the measure of how Bitcoin is important in the crypto world. To know the Bitcoin dominance rate observe its market cap as a percentage of the entire market cap for all cryptos. The traders and investors pay a lot of attention to it.

Okay, it isn’t shocking news that Bitcoin is dominant. Everyone knows that. It is here for a long time, it was the first, it has attention like a rock-star.

So, why this question about the Bitcoin dominance rate now? The alarms are a turned-on because of Bitcoin’s current climbing.

In the crypto markets, it covers about 70% of the market cap as a whole. The same level was seen in April 2017.
So, there we have a concern on the scene!

Some are afraid that this is a sign that the bull run is close. That will accelerate bitcoin’s dominance to over 90%. The existence of any other crypto would be doubtful. That high dominance rate would destroy the others.

The altcoins are on the edge of return, think others. Or no-return, the opponents are kidding. As always, when it comes to data interpretation you can see and hear literally everything and anything. But to be serious, the bitcoin dominance rate may show us many things. Even the increase isn’t always good news.

Why increasing dominance rate isn’t good news?

Well, Bitcoin’s dominance rate is not an independent measure. It is related to momentum, inclination, confidence. In one word – popularity. Bitcoin is the most popular cryptocurrency without a doubt.

The price of Bitcoin is the measure of its reputation. On the other hand, dominance is related to bitcoin’s relationship to other cryptos. There is one trick: the dominance may increase when the price is going down and vice versa. To repeat, it isn’t an absolute measure.

Bitcoin’s high dominance

It could be a double sword.

Bitcoin is an extremely volatile asset and risky this attribute often led investors to less risky assets and, can we say, safer. But, on the other hand, thanks to its popularity the whole sector of crypto assets may benefit if there are more investors in Bitcoin.

This new increasing Bitcoin dominance is proof that investors’ sentiment that this crypto is relatively safe to invest in. The sentiment indicator is just a current opinion, be careful with that.

How can you be sure the trend will continue? With what energy? What sentiments do is give power, to push things to go further, to build a chain of very convinced investors and traders who are buying bitcoin.

The added importance is market trust, particularly at the initial steps of institutional engagement.

Big traditional funds are not worried about the relative value of one token related to another. Their consideration is their portfolio. They will decide what is better to invest in, crypto, or some other asset. Having that in mind, it is more likely they will invest in Bitcoin if they want to have crypto in their portfolios.

Why is that?

Bitcoin has the liquidity, active derivatives market and is registered in most jurisdictions. With the rising dominance rate, Bitcoin has the opportunity to boost investors’ trust in the overall crypto market.

But nothing would last forever.

Prior run-ups in the dominance rate were followed with a change altogether with investors’ attention to new choices. That is a calculation. When market leaders grow extremely, wise investors take profits and re-invest in other winning assets. The last bull market noticed bitcoin’s dominance decline from above 85% to under 40%. This time it is something else.

How? During the previous bull market, we had plenty of new tokens. Where are they now? They are not exciting anymore? No, they are not existing anymore.

Moreover, the interest of institutional investors with a focus on bitcoin will launch bitcoin’s dominance to jump even more.

Stay tuned and keep your eye on what is happening behind the stage. Traders-Paradise has a fantastic example of how to MONETIZE BITCOIN

15th August 2019
Bitcoin Usage for Laundering the Dirty Money

The military wing of Hamas, the Gaza-based Brigades called their patrons to send them money using Bitcoin

By Guy Avtalyon

Bitcoin usage for laundering the dirty money is made much more often than anyone can expect. Criminals utilize the fast-moving speed of technological development with financial transactions. That fact was confirmed many times until now. They are totally ready and educated to handle new payment methods and cryptocurrencies are extremely interesting for them.

The criminals are using cryptocurrency to launder the incomes of their criminal activities, of course. The most popular is Bitcoin, of course. But not due to its nature. The reason is there are so many exchanges where they can exchange their dirty money for bitcoins.

Their opinion is that it is easy to hide tracks of transactions just because one of the main characteristics of Bitcoin is anonymity. That way, they can hide the source of income and send cryptos all over the world without exposure to the law.

As Bitcoin appeared, meaning since 2009, more than $2,5 billion of dirty money was laundered through Bitcoin. But, Bitcoin usage for laundering dirty money requires much more knowledge and money.

The chain of mistakes

The first mistake in their minds and education and overall knowledge about crypto – it isn’t so hard to hide the tracks of transactions. Actually, it is quite easy to link Bitcoin transactions and identify the criminals. Blockchain, the technology behind the Bitcoin, is entirely transparent and browsable by literally anyone.

The criminals are not so good artists and that’s why those stupid idiots are constantly caught for using Bitcoin in illegal activities. The point is that Bitcoin isn’t anonymous in the sense of their opinions.

The truth is, there is hardly any crypto on the market that is able to hide identities when making transactions.
But how do they do that? Of course, we will never disclose all their tricks here even if we know a lot about them.

First of all, they are using the dark web.

For example, criminals divide Bitcoin after purchasing it and reassemble it with the help of so-called “tumblers”. Tumblers are. let’s say, bitcoin mixers. Their task is to clean that dirty crypto bought with dirty money or received as dirty already as payment for criminal jobs. How do they do it?

Tumblers are spreading that crypto on different addresses and wallets. It is necessary to have just one wallet on the so-called clearnet, and a few hosted on the dark web. No more details. That will be all about Bitcoin usage for laundering dirty money.

This service isn’t cheap, the fees are ranged from 1-3% of the whole amount.

Hamas practices Bitcoin usage for laundering dirty money

Criminals of all colors and sorts are trying to launder their dirty money. Recently, Hamas is embracing the Bitcoin. They developed a complex cryptocurrency system to raise funds from sponsors and hide the evidence. The military wing of Hamas, the Gaza-based Izz El-Deen al-Qassam Brigades called their patrons to send them money using Bitcoin.

The fundraising operations are revealed online at the end of January this year. After so many misuses by one or the other sort of criminals, we have on the crypto-scene new ones – terrorists. For the terrorist’s group’s dark purposes, Bitcoin is useful to raise funds.

Hamas is one of them. Hamas rises money in Bitcoin. Its Izz El-Deen al-Qassam Brigades is a terrorist group proscribed by many countries, among others, the United States, Israel, and the European Union. In truth, sending funds to Hamas is prohibited in those regions.

The complexity in Hamas’ work lies in Its website which is generating a new digital wallet with each transaction.

Far more complex to track transactions but not impossible.

So, they were caught.

A leading blockchain analysis firm Elliptic identified them. They discovered where the cash came from, and also, what the Al-Qassam Brigades did with the contributions. Elliptic found that the bulk of the transferred bitcoins came from a “single, major cryptocurrency exchange”. The point is that analysts didn’t have such a hard task to track cash supplying Hamas.

Yet, Hamas has to figure out how to use Bitcoin smarter and hide the tracks better. This terrorist group was targeting an international audience and supporters.

Nevertheless, the scheme employed by this terrorist group reveals the weakness of cryptocurrencies. Bitcoin has already suffered criticism in the past over suspicious websites where people have used this crypto to purchase drugs and guns, or for money laundering. Without regulations in this sector, it is quite possible for terrorists to collect money, to receive donations from sponsors, to send money over the globe, and finance their nefarious activities.

Happily, there are so many other ways to use Bitcoin for the right purpose.

12th August 2019
Difficulty Ribbon – The right time to buy Bitcoin

When is the best time to buy Bitcoin?

By Gorica Gligorijevic

Willy Woo, who is an on-chain metrics analyst tweeted that Bitcoin’s current charts showed Difficulty Ribbon. That indicator, according to him, points the best time to buy Bitcoin. The ribbon is composed of moving averages on Bitcoin mining difficulty.

“When the ribbon compresses or flips negative, these are the best time to buy in and get exposure to Bitcoin.”

Difficulty Ribbon also gives information on the rate of change in difficulty. According to Willy Woo, this is the sign that Bitcoin will never be at $6,000 again.

The volatility of Bitcoin is really terrifying for most people. Daily movements are something that only rare and good nerves can handle. Hey, Bitcoin jumped 20% during one weekend! At the same time, it is so impressive and exciting. Bitcoin dropped for more than $1,000 but it recovered again. What a character indeed! Of course, volatility is the nature of BTC.

But Woo is providing us a deeper insight.

The difficulty Ribbon indicator shows the best time to buy Bitcoin for the long-term.

If you open your eyes you’ll be able to see it too. for a moment and you’ll see the bigger picture. The chart that Woo shared on Twitter clearly shows the ‘ribbon difficulty’ indicator. Historically it has predicted the best times to get exposure to bitcoin during the past ten years.

This is that great moment. The chart shared by Woo, shows how the difficulty ribbon packs and turns overall negative result? It is obvious in the chart where the dark line passes above the weaker lines. This trader explains. He is expecting a Bitcoin miner capitulation next year. That will halve the supply but “add more fuel to the bull market,” as he tweeted. The point here is that reduced numbers of Bitcoin will give more power to this bull market. The BTC price will go up so, this is the right time to buy and hold it.

What is the Difficulty Ribbon?

The ribbon chart moving averages on mining activity, letting us see the variation in bitcoin mining difficulty. It also illustrates how bitcoin mining changes the BTC price.

How does Difficulty Ribbon work?

When the new coins are mined, miners are selling some of them to cover the costs of mining. That results in a bearish price squeeze.
The smaller miners have to sell more to continue producing. But, after some time it grows unsustainable, and they capitulate. So, after that happen only the powerful miners are in the scene. The hashing power and network problems are lessened (that is ribbon compression) and the powerful miners will sell fewer coins to cover costs. That provides more space for bullish price movements.

When this indicator is visible?

This indicator is visible at the end of bear periods and after miners capitulation. That is the time when miners lessen their selling demands which allow Bitcoin price to resolve and then rise more.

Miners capitulate in bear periods. But it can happen when they mined only half the coins for the costs of the full mining and the Bitcoin market price didn’t achieve that level yet. The compression is visible after each halving in producing as there are fewer miners.

The first who described the Difficulty Ribbon indicator was Vinny Lingham in 2014. So, it was 5 years ago. Now, we have 10 years of historical data. Long enough to make sense to predict that this is the right time to buy and hold Bitcoin at least until next year. According to the Difficulty Ribbon indicator in the charts.

8th August 2019