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Extreme Fear After BTC Lost $50K: Bitcoin Fear And Greed Index at 5-Month Low

On December 4, bitcoin suffered its worst trading day since mid-May, as its price plunged to a two-month low of $42,000. Somewhat expectedly, this massive $16,000 crash in less than 24 hours led to a change in investors’ sentiment as the popular Bitcoin Fear & Greed Index went into “extreme fear” territory once again.

Extreme Fear Shakes The Crypto Community

The Bitcoin Fear & Greed Index works as an indicator of momentary investor sentiments towards the primary cryptocurrency. It tracks several segments such as the volatility of the asset, volume, social media comments, surveys, and others to provide a result between 0 (Extreme Fear) and 100 (Extreme Greed).

Following the recent bloodbath in the cryptocurrency industry, and more specifically, bitcoin’s price dump to around $42,000, the metric now points at 16 – “Extreme Fear.” It is worth noting that the last time the index showed a number lower than 16 was July 21. Back then, BTC’s USD value dived under $30,000.

Bitcoin Fear and Greed Index. Source: Alternative.me
Bitcoin Fear and Greed Index. Source: Alternative.me

After rallying to an all-time high price of almost $70,000 in the middle of November, the leading digital asset kept hovering above $60,000 for the next couple of weeks. However, the picture drastically changed at the end of the month when it dropped under $55,000. One of the reasons behind the decline might have been the new COVID-19 variant – Omicron – which was detected in South Africa and harmed all financial markets.

In the following days, BTC bulls tried to push the price towards $60,000 but without much success. Somewhat expectedly, Bitcoin Fear & Greed Index went to “Fear” and “Extreme Fear,” indicating the concerns among cryptocurrency investors.


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At the beginning of December, when the asset was preparing for another attempt to push towards that particular line, the bears came to play big time and led to the aforementioned tumble of $42,000.

According to the analytics company CryptoQuant, on-chain developments ahead of the crash could have foreseen what happened. The number of bitcoins sitting on exchanges, which spiked sharply hours before the drop, was one of the signals.

Whales to Sell More?

CryptoQuant’s Exchange Whale Ratio, which compares the top 10 largest deposits to exchanges with all other deposits, large BTC holders have been increasingly depositing more substantial quantities of the asset to trading platforms lately.

The metric typically stands above 85 only in bear markets. However, it has surged above 95 in the past few days after a sudden uptick ahead of the crash. Consequently, the analytics company warned that BTC’s price could face another downfall soon if whales decide to sell large quantities.

Is It ‘Buy The Dip’ Time?

While “Extreme Fear” might not sound like a ringing bell for individuals to enter the crypto market, many experts actually believe that bitcoin being in that state is a good buying opportunity. It is worth mentioning that the billionaire investor – Warren Buffett – once said investors should be greedy when the crowd is fearful and vice versa.

By the looks of it, the authorities of El Salvador (the Latin American country where bitcoin is legal tender) are in favor of the price decline and support Buffett’s thesis. A few days ago, President Nayib Bukele announced that the nation purchased 150 more coins at an average price of just over $48,500.

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CZ: Binance Will Apply for UK License Despite Its Local Regulatory Issues

Changpeng Zhao – Chief Executive Officer of the cryptocurrency exchange Binance – said his company will apply for a Financial Conduct Authority (FCA) license in the United Kingdom. While there has been tension between the trading venue and the local watchdog for some time, the exec assured their relationship had improved lately.

Targeting The Hostile Territory

In a recent interview with The Telegraph, CZ revealed that Binance is looking to re-establish its presence in the United Kingdom and “serve UK users in a fully licensed and fully compliant manner.” He outlined several company changes that will resolve some of the issues with the local regulator. 

“We’re fully re-engaged there. We’re making a number of very substantial changes in organizational structures, product offerings, our internal processes, and the way we work with regulators.”

Changpeng_Zhao
Changpeng Zhao, Source: Business Insider

Specifically, Binance aims to become a registered cryptocurrency firm on the Albion, which abides by money laundering and terrorist financing monitorings, in 6 to 18 months. One way to do that is to establish a separate entity called Binance UK, similar to the existing one in the USA.

The Financial Conduct Authority (FCA) of the United Kingdom has shown a rather negative attitude towards Binance during the recent months. In June, the regulator issued a warning to the exchange that it is not allowed to operate in the country. In August, the FCA reiterated its stance stating that Binance poses a significant risk to investors and cannot be supervised effectively.

Having received public backlash not only from the UK regulator but also from many others worldwide, the trading venue decided to re-adjust its structure. Established as a decentralized platform with “no headquarters and no borders,” it is now looking for a place to settle.


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As CryptoPotato recently reported, Ireland and France are some options where Binance might set up headquarters.

Crypto Can Improve Society

CZ continued by highlighting the merits of the cryptocurrency industry, describing it as a “useful thing to contribute to human society,” reminding that civilization has advanced thanks to technological improvements.

The CEO also added that digital assets are a better version of money since transactions with fiat currencies are slow and expensive:

“Money is still very clunky today. We can maintain the same degree of safety, the same degree of compliance, but at the same time making it much faster, much easier, much cheaper to transact.”

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Cardano’s DEX SundaeSwap Launches Public Testnet

In an accouchement on Dec 5, the company behind Cardano – Input Output HK – stated that the SundaeSwap DEX was launching imminently as a testnet.

IOHK added that it anticipates a growing interest in Cardano’s big DEX ambitions.

“We’re expecting a huge amount of interest in this highly-anticipated event, and lots of activity. This is why we are collaborating.”

However, there have already been teething problems with a few bugs that have delayed the launch from Sunday to Monday.

The launch is just a testnet, however, so there are a few steps to take in order to participate. Using a third-party wallet such as Nami is required to connect to the faucet to obtain testnet tokens to experiment with.


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The announcement did not mention how long the testing would be running for or a mainnet launch date. SundaeSwap is a scalable DEX and automated liquidity provision protocol enabling native token and ADA exchanges with a whitepaper released in June.

Stress Testing the Network

IOHK stated that the test is intended to “put the network under high throughput,” enabling the team to monitor and analyze parameter settings. Cardano has set these network parameters, such as block size, CPU limit, and memory limit, conservatively while the testing begins.

It added that users are likely to expect congestion and bugs on the testnet, which signifies that it is getting the traffic volume needed for assessment.

“Remember this is early DApp software, and it’s still early days for DeFi on Cardano. Testnets are a key part of iterating & improving the experience.”

Cardano has emphasized a “slow and steady” approach to DeFi, Dapps, and smart contracts, which has made it a target for some criticism from the crypto community. However, it still claims to be able to compete with and even surpass Ethereum.

IOHK said, “ignore the FUD” because there will be bugs, some of which were already being reported by testnet users. The firm encouraged users to join its Discord channel to give feedback on the SundaeSwap platform.

ADA Price Reaction

Cardano’s native token, ADA, has fallen in tandem with the rest of the crypto market over the weekend, getting no momentum from the DEX launch.

At the time of writing, ADA was trading at $1.4, down another 3% on the day, according to CoinGecko. The token has lost 15% over the past seven days and has dumped a hefty 55% since its Sept 9 all-time high of $3.02.

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Croatia’s Largest Food Retailer Konzum Accepts Crypto in Online Shops

The biggest food producer and retailer in the Western Balkan region – Konzum – became the first retail chain in Croatia where customers can pay with digital assets. Currently, such transactions are available only in the online store, but the company plans to introduce the service across its supermarkets in the near future.

In addition, the leading tech-focused North American e-retailer – Newegg – announced it will accept Shiba Inu (SHIB) as a form of payment on its platform during the Christmas holidays. Nothing – a London-based consumer technology company – will also allow cryptocurrency settlements for its newest product.

Crypto Invades The Balkan Peninsula

Konzum – Croatia’s largest supermarket chain with more than 10,000 employees – revealed it will enter the cryptocurrency industry by accepting several digital assets as a means of payment. These include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ripple (XRP), Stellar (XLM), Dai (DAI), EOS (EOS), Tether (USDT), and USD Coin (USDC).

To enable such payments, Konzum cooperated with the domestic fintech company Electrocoin and its PayCek system, known as Croatia’s first cryptocurrency payment processor. Given the volatility of most digital tokens, the latter will guarantee the buyer a fixed exchange rate at the start of the transaction and provide enough time for successful execution.

Uroš Kalinić – Member of the Management Board of Konzum for Finance and IT – noted that Konzum is constantly monitoring global trends hinting that the cryptocurrency industry is one of them.


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“As the largest retail chain in Croatia, which in its almost 65-year history is a continuous leader in the domestic market in terms of business results and technological achievements, we are proud to be leaders in another area that is rapidly developing and dictating the future,” he summarized.

Konzum is not only the leading supermarket chain in Croatia but also the biggest in the Western Balkan area. Apart from its homeland, it stretches to two other countries – Bosnia and Herzegovina and Serbia. The retail giant serves over 650,000 customers each day in its more than 700 stores, as the cryptocurrency option will be available in some of them in the upcoming months.

Newegg And Nothing Follow The Trend

Another major e-commerce company that embraced additional digital asset settlements recently is Newegg. The California-based firm, which accepted bitcoin as a payment method in 2014, now added the popular meme coin Shiba Inu (SHIB) to its list of supported digital assets. Interestingly, it made the news official by displaying it on The Reef – North America’s largest DOOH billboard located in downtown Los Angeles.

Shiba Inu
Shiba Inu Billboard, Source: newegg.com

Earlier this year, Newegg was one of the first firms globally to accept SHIB’s biggest rival – Dogecoin (DOGE). Later on, it also added Litecoin (LTC).

Andrew Choi – Director of Brand Marketing at the company – admitted that customers are highly interested in cryptocurrencies. Giving them options to use bitcoin and the alternative coins as a payment method provides “greater flexibility.”

Subsequently, Nothing – a technology company founded by Carl Pei (OnePlus’s Co-Founder) – dived in the cryptocurrency bandwagon by accepting digital asset payments for its Nothing ear (1) black edition wireless earbuds. Those coins are Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Dogecoin (DOGE).

The payment option is available in Nothing’s online stores in the following countries: the UK, the USA, Canada, Belgium, France, Germany, Greece, Italy, and Japan.

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LUNA Breaks ATH: Gained 2700% Since May’s Crash as $13.9B Locked on Terra

While the broader crypto market is still struggling with the bearish trends from last week, LUNA, the native cryptocurrency of the Terra ecosystem, is currently one of the best-performing assets in the market.

According to data by CoinGecko, LUNA has gained over 50% within the last seven days, and despite the weekend crash, hitting a new all-time high (ATH) of $77.7 earlier today.

LUNA’s bullish trend within the past few weeks has been impressive and astonishing, as the coin was one of the worst-hit cryptocurrencies during the massive May sell-off.

LUNA Has Gained 2700% since May Crash

LUNA went downhill following the May 2021 crash, with its price slashing about 81% of its value at the heat of the sell-off, knocking TerraUST (UST) off the peg.

However, the coin made quite a dramatic comeback, recording highs after highs and outperforming the second-largest cryptocurrency, ETH, by 10x. Since May, LUNA has recorded a 2700% increase in value, with ETH having only a 270% increase since the crash.


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LUNA has also surpassed some of the trending coins in the market, including the meme-inspired coins, DOGE and Shiba Inu.

At the time of writing, LUNA is the 10th largest cryptocurrency, trading at $67 with a market cap of $26.56 billion.

Terra’s TVL Hits $13.9 Billion

Terra, LUNA’s native blockchain ecosystem was also not left out in the bullish trend. The leading decentralized finance (DeFi) blockchain network has also recently achieved a new milestone.

As per a recent tweet by Wu Blockchain, Terra’s total value locked (TVL) has recently hit $13.9 billion, a weekly growth of 43%.

With this latest development, Terra is currently the third-largest DeFi blockchain, just after Ethereum and Binance Smart Chain (BSC). The network managed to surpass Solana and Avalanche on the list in the last two days, with a growth rate of 42.9% within the past 7 days.

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Celsius Network Reportedly Lost $50 Million in the $120 Million BadgerDAO Hack

It appears that crypto lending firm Celsius Network was also affected by this week’s BadgerDAO hack. The firm reportedly lost $55 million worth of wrapped bitcoin (wBTC).

Hacker Steals $120 Million worth of wBTC

CryptoPotato reported over the week how hackers managed to steal around $120 million from BadgerDAO – a decentralized autonomous organization that allows users to put bitcoin as collateral across DeFi applications.

The attacker compromised the DAO’s front end. The BadgerDAO team is currently investigating the exploit with the help of blockchain forensic experts from Chainalysis. 

Several users were complaining about receiving unusual requests for additional permissions in their accounts. The attacker managed to add a script to the frontend that tricked users to provide access to the hacker to drain the funds from their wallets.


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Engineers from BridgerDAO have suspended all smart contracts to prevent further withdrawals while analysts from Chainalysis investigate the incident. At first, the amount stolen was estimated to be around $100 million, but new data from blockchain security firm PeckShield indicated that total losses amounted to over $120 million.

This hack comes shortly after MonoX, a DeFi finance protocol, was compromised for over 30 million on Nov. 30.

Celsius Network May Have Been The Biggest Victim

There’s one address that lost 896 wrapped bitcoin, or around $51 million, making it the biggest victim from the hack. On-chain data from Etherscan suggest the address – starting with 0x534 – could be linked to Celsius Network as it has already transacted with other wallets owned by the lending firm, one of them tagged as “Celsius Network Wallet 5.”

In a Twitter thread, a user by the name BigTimeCali shared several transactions made by the wallet, adding that Celsius deleted any comments related to the hack on its Reddit page.

The address holder seems to be a large whale that often makes seven figures transactions and closely operates with a wallet with over $67 million, $40 million of which are held in Celsius native token CEL. This is not conclusive; however, it strongly suggests that Celsius is behind the wallet, but the lending firm has refused to make any statements about the hack.

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Cardano Price Analysis: ADA Breaks Below $1.5, Now Facing Critical Support

Yesterday’s market crash pushed ADA below $1.5. As of writing these lines, ADA faces a crucial support level at $1.3. In case that this level breaks down, ADA is likely to retest $1.

Key Support levels: $1.3, $1

Key Resistance level: $1.5, $1.7

Cardano’s native token has seen a downtrend correction since early September, following hitting the current all-time high at $3.09, according to CoinGecko.

Unfortunately for ADA’s holders, the most recent market crash drove it below the key support level at $1.5 down to $1.3. Price is currently struggling to maintain the critical support, and ADA may continue to fall to $1 if the current level isn’t able to hold.

ADA has been in a steep and aggressive bearish trend that started months before this market crash. Therefore, the bears are in control of the market. In order to start seeing a bullish reversal, the price needs to reclaim the $1.5 level, which has turned into resistance following the weekend crash.

Chart by TradingView

Technical Indicators

Trading Volume: Increasing volume as price declines is a bearish sign. Best to stay away from ADA until there are signs of a possible reversal, followed by a massive amount of volume.

RSI: The daily RSI has been hovering just above 30 points or above the oversold territory since the correction started in September. This puts ADA in a clear bearish trend. However, this latest drop in price did not make a lower low on RSI, indicating that bears may become exhausted. In addition, the oversold area is nearby.

MACD: The MACD on the daily timeframe is bearish with expanding moving averages and a negative histogram. This has to reverse quickly; otherwise, the $1.3 support level may be under significant pressure.

Chart by TradingView

Bias

The current Cardano (ADA) bias is bearish. Since launching smart contracts on Cardano, the trend has been bearish for over three months, and this latest market crash even made it more difficult for ADA to find a way out of this downtrend.

Short-Term Prediction for ADA Price

If ADA cannot stop the downtrend at $1.3, the price will most likely drop to retest the next significant support around $1. The bears dominate the market as of now.

Keeping in mind the current market conditions, it’s hard to see how ADA can reverse course at this time. In the best-case scenario, ADA can consolidate here and attempt a breakout later in December.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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Bank Indonesia Aims to Fight Bitcoin with Its CBDC (Report)

The central bank of Indonesia is willing to issue a digital form of its national currency as a way to “fight” private digital assets. The financial institution believes a CBDC would be more “credible” than bitcoin or the altcoins.

Indonesia and its CBDC Efforts

Bank Indonesia (BI) – the country’s central bank – displayed its intentions to launch a central bank digital currency (CBDC) earlier this year. In May, Governor Perry Warjiyo asserted that it is on its way without revealing a specific launch date.

Back then, BI noted that during the COVID-19 pandemic, locals have switched from cash to digital payments. As such, a CBDC monitored and controlled by the authorities would be the best option for that monetary transition, the institution opined.

According to a recent coverage by Bloomberg, Bank Indonesia now has another reason to issue a digital rupiah: to “fight” cryptocurrencies which cause a significant impact on the nation’s financial network. Juda Agung – an Assistant Governor at the bank – added that a CBDC is a more reliable option than bitcoin, ether, and the rest of the private digital assets:

“A CBDC would be one of the tools to fight crypto. We assume that people would find CBDC more credible than crypto. CBDC would be part of an effort to address the use of crypto in financial transactions.”

In the meantime, the Indonesian government intends to create a dedicated digital asset exchange by the end of 2021 since the country has more than 7 million crypto investors, while transaction value has surpassed $30 billion. In comparison, nearly twice fewer locals invested in the space in 2020.


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Crypto Is ‘Haram’ In Indonesia

A few weeks ago, the National Ulema Council (MUI) – Indonesia’s top Islamic scholar’s body – showed a highly negative stance on cryptocurrencies by declaring all operations in the industry as “haram,” or forbidden.

Asrorun Niam Soleh stated that the rejection ignites from the thesis that bitcoin and the alternative coins are riddled with “uncertainty, wagering, and harm.” Nonetheless, the MUI’s Fatwa Commission Chairman explained that digital assets can be traded as a commodity if it obeys the Shariah law and shows a “clear benefit.”

With a population of more than 273 million, Indonesia is known as the most populated Muslim-majority nation. Having that said, the development may have a significant effect on the local cryptocurrency ecosystem.

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Ethereum Price Analysis: ETH Reclaims $4K Post Crash, Reaching 3.5-Year High Against BTC

The bad news is that following the crypto market collapse, ETH crashed to $3,470 on Bitstamp on Saturday early morning UTC. However, the good news is that ETH showed strength and managed to recover most of the drop, reclaiming the critical support level at $4K.

Key Support levels: $4,000

Key Resistance levels: $4,284, $4,500, $4,868 (ATH)

Despite the market crash on Saturday morning, which saw significant liquidations of over-exposed leveraged traders, Ethereum managed to recover almost entirely, as of writing these lines.

This is an important signal to the market that ETH is firmly holding against Bitcoin, which appears much weaker following this weekend crash. While ETH managed to recover fast and reclaim the $4K milestone, the same cannot be said about Bitcoin.

For this reason, on the ETH/BTC chart, ETH just made a higher high at 0.085 BTC, which is the highest level since May 2018. The all-time high versus Bitcoin lies around 0.15 BTC, and Ethereum appears well on its way towards that target after breaking above the key resistance at 0.080 BTC, along with a horizontal triangle pattern (as shown on the following chart)

Against the USD, ETH has to remain above the key support at $4,000 to maintain the bullish price action and then likely to face resistance levels at $4,284, $4,500, and $4,868 (ATH).

ETH/BTC Chart by TradingView

Technical Indicators

Trading Volume: During the crash, the volume peaked. However, the recovery candle saw a lot fewer amounts of volume. Best to be cautious because of this, particularly once the price reaches the first resistance at $4,284. In other words, the volume is not in favor of the bulls right now.

RSI: The daily RSI made a higher low, despite the crash. This is a sign of strength and gives hope for a speedy recovery.

MACD: The MACD was bullish before the crash, but this quickly rolled over due to the collapse, as the moving averages flipped back down and the histogram went into the negative territory. If ETH stays above $4,000, the MACD will likely revert back to the bullish territory.

Chart by TradingView

Bias

The bias for ETH is neutral. It is too early to turn bullish and traders should be cautious as any significant rejection at the resistance levels may lead to an over-reaction from the market due to the recent crypto market crash.

Short-Term Price Prediction for ETH

Ethereum’s fast recovery back above the psychological level at $4,000 is a key win for the bulls and if they can sustain it, then confidence in ETH will return and build up momentum for a rally. ETH must not close a daily candle below $4,000. As long as this is so, ETH is well-positioned for higher targets.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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Crypto Twitter’s Reaction on Ross Ulbricht’s NFT Drop

2021 has been a profitable year for non-fungible tokens (NFTs) as the market has grown exponentially, allowing anything to be tokenized on the blockchain.

The decentralized nature of the industry also allows anyone to create, mint, and issue their NFTs from any part of the world, including those in prison.

Ross Ulbricht Launches NFT

Ross Ulbricht, the convicted founder of the infamous and defunct dark web marketplace Silk Road, recently announced that he is auctioning his line of NFTs.

The Ethereum-based digital collection, dubbed the Ross Ulbricht Genesis Collection, details various points of Ulbricht’s life, from his childhood to his nine years in prison.

The NFT drop is a unique collection of writings and handmade art, including comic books, artworks depicting scenes from his court trial, an original animation made by the digital artist, Levitate, with a voiceover by Ulbricht himself, which his supporters had minted into NFTs.


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Supporting Prisoners

Funds generated from the auction, which is scheduled to end on Dec. 8, will be used to support prisoners and their families via the charitable fund Art4Giving.

Additionally, the proceeds will fund a trust dedicated to efforts geared toward freeing Ross Ulbricht from life in prison.

Ulbricht added, “My own future may look bleak, but I can still do a little something to heal the damage I see all around me. Prison shatters families. It shatters communities. And the kids are the ones who suffer…

With this NFT, I see a chance to make a difference where it really counts: in the lives of kids who did not ask for any of this. There is a lot we can do with the proceeds of this auction, but one idea I am committed to is to help kids travel to visit their moms and dads in prison.”

Crypto Twitter Reacts

The announcement of Ulbricht’s NFT collection was met with mixed reactions across Crypto Twitter. While his supporters accepted it wholeheartedly, other industry participants did not.

Ulbricht has been a controversial figure within the crypto space ever since his incarceration about eight years ago.

He launched Silk Road in 2011, a dark web marketplace that was used for trading all sorts of illegal items, including drugs, weapons, and more, using bitcoin and other digital assets. In 2013, however, Ulbricht was arrested, and Silk Road was subsequently shut down. He was later convicted of conspiracy to launder money, computer hacking, narcotics trafficking, and running a criminal enterprise. Although he received two life sentences plus 40 years and was denied a presidential pardon earlier this year, his supporters have continued to rally for his release.

While some Bitcoin enthusiasts are completely against the idea of a criminal selling NFTs, the use of ETH to mint the tokens, among other things, Ulbricht has received immense support too.

Crypto Cobain, the host of UpOnly, slammed Bitcoin maximalists for their unwelcoming response to Ulbricht’s NFT drop, noting that he had pioneered the early adoption of Bitcoin.

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