Monero
Uniswap payday, ETH transactions hit record high & EU backs stablecoins
Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!
Top Stories This Week
Frenzy as Uniswap launches new governance token
Uniswap stole the show this week when it announced it was launching UNI, its very own governance token. A total of 1 billion tokens will exist, and anyone who has ever used the platform can claim 400 of them.
Thousands came forward to accept their reward, and at one point, the airdrop was worth a cool $3,356. Not bad considering each token was initially priced at $3.
Within a single day, UNI was listed on more than a dozen exchanges and had driven $1.8 billion in trading volume. Binance added to the excitement by announcing support for the token just 90 minutes after it went live.
Many analysts were unsurprised when UNI rallied to highs of $8.60, and although the token has since had a correction, some traders believe the token could be worth many billions in the long term.
One of them, Crypto Medici, wrote on Twitter: “UNI going to be worth $3-5 billion (conservative) Still extremely undervalued. Token distribution was genius and many that sold will FOMO back in when we break $1 billion. This is before V3 comes out, and liquidity mining ramps up.”
Daily Ethereum transactions hit a new historical high amid DeFi boom
The Uniswap frenzy helped daily transactions on the Ethereum blockchain reach a new all-time high of 1.4 million — exceeding the previous record of 1.35 million transactions in January 2018.
After the UNI token launched, transaction fees spiked to almost $1 million an hour. All of this means that the significant levels of congestion on the Ethereum network show no signs of abating, prompting renewed concerns about scalability.
Now, Coinbase Pro has had enough. The exchange has announced that it will no longer cover network fees on behalf of users. In a series of tweets, it explained:
“Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.”
In other Ethereum news this week, new research published by Cointelegraph Consulting has revealed that the total market cap of ERC-20 tokens has overtaken Ethereum’s.
A boring week for Bitcoin — But will momentum tip back in favor of bulls?
As Cointelegraph analyst Michaël van de Poppe notes, it’s been a relatively dull week when it comes to Bitcoin’s price.
The world’s biggest cryptocurrency has seen a slow upward trend after finding a footing above $10,000. Although the rally continued to $11,000 on Sept. 18, it was pushed back by some short-term resistance levels.
Van de Poppe says BTC is now facing a crucial resistance between $11,200 and $11,400, and if this area can be broken, a retest of higher levels will be back on the table. He doesn’t expect there to be a clear breakout out of this zone in one go and says sustaining support at $10,750 is crucial.
“Establishing new yearly price highs highly dependent on breaking the multi-year resistance level at $12K to continue the general uptrend for the rest of the year,” he wrote.
Also this week, the Bank of England became the latest central bank to discuss negative interest rates — effectively meaning that savers must pay to store cash. In response, Tyler Winklevoss said: “You couldn’t buy a better advertisement for Bitcoin.”
EU to see comprehensive crypto regulation by 2024
The European Union has officially got on-board with blockchain, announcing that it wants to make cross-border payments quicker and cheaper through the use of crypto assets like stablecoins by 2024.
The trading bloc is going to introduce fresh regulations that will promote this technology for international money transfers.
According to the European Commission, 80% of consumers in the EU use paper money at present, but it wants to see digital payments become more common, with immediate transaction times.
Documents seen by Reuters said: “By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector. It should also address the risks associated with these technologies.”
Apple forces Coinbase to change its crypto products, CEO claims
Coinbase CEO Brian Armstrong has accused Apple of stifling innovation in crypto and sidelining DeFi to protect itself from competition.
The head of the exchange even claimed that other crypto firms are “reluctant to speak out on these topics for fear of retaliation.”
Claiming that attempts to talk to Apple directly have reached a dead end, Armstrong said that Coinbase is being stopped from adding features to its iOS apps that would allow users to earn money using crypto and access DeFi apps.
He wrote: “Why would Apple want to prevent people from earning money during a recession? They seem to not be ok with it, if it uses cryptocurrency. I’m not sure why.”
Winners and Losers
At the end of the week, Bitcoin is at $10,838.10, Ether at $368.44 and XRP at $0.24. The total market cap is at $344,943,312,540.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Hyperion, ABBC Coin and Celsius. The top three altcoin losers of the week are DFI.Money, SushiSwap and Flexacoin.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most Memorable Quotations
“Following UniswapProtocol’s announcement of the $UNI token today, #Ethereum saw a massive surge in miner fees. Almost $1M USD in fees were spent in a single hour!”
Glassnode
“Starting today, Coinbase Pro will pass along network fees directly to our customers… Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.”
Coinbase Pro
“Prediction: $UNI will soon be the #3 crypto asset.”
Cole Kennelly, DeFi NYC founder
“I don’t necessarily think that 2020 is going to be the year of some type of major retail bull run, largely due to the fact that the global economy still lingers over this industry, just like other financial markets.”
Joel Birch, Stacked co-founder
“Thanks Bank of England, you will help drive $BTC adoption.”
Tone Vays, veteran trader
“2020 has witnessed a surge in the number of ATMs supporting digital coins.”
Aksjebloggen
“As $BTC has crossed above $11,000 for the first time since September 3rd, the sentiment of #Bitcoin on #Twitter is surprisingly at an all-time low.”
Santiment
“What happens when vaccine is proven? Gold silver Bitcoin will CRASH. Buying opportunity.”
Robert Kiyosaki, Rich Dad Poor Dad author
“Since DeFi protocols are designed to be permissionless, anyone in any country is able to access them without any regulatory compliance. As a result, DeFi can easily become a haven for money launderers.”
CipherTrace
“We added our 40th state today just a week shy of our one-year anniversary. 100% coverage is our goal.”
Binance US
Prediction of the Week
Bitcoin Birch says no retail crypto-wide bull run likely for the rest of 2020
In the aftermath of May’s halving, there was optimism that Bitcoin could be about to embark on a bull run — not to mention endless predictions that the cryptocurrency would return to all-time highs. But Joel Birch, the co-founder of the automated investing platform Stacked, now believes this isn’t likely.
Speaking to Cointelegraph, he said: “I don’t necessarily think that 2020 is going to be the year of some type of major retail bull run, largely due to the fact that the global economy still lingers over this industry, just like other financial markets.”
Despite that, he does believe that Bitcoin has an opportunity to continue heading upward between now and December.
Others remain as bullish as ever. PlanB, the creator of one of the best-known Bitcoin price models, has said it’s high time for BTC to begin its next significant price rise to $100,000, writing: “Time to go up.”
FUD of the Week
Police summon Bithumb chairman for questioning over alleged fraud
The drama over alleged fraud involving Bithumb’s senior executives continued this week, with the company’s chairman summoned for interrogation.
Police reportedly want to question Lee Jung-hoon, who is accused of multiple fraud and embezzlement offenses regarding the failed listing of the BXA token.
It is believed that investors lost up to $25 million as a result, with Lee allegedly embezzling these funds in overseas property purchases and offshore investments.
Also this week, Bithumb’s offices were raided for the third time this month. Police reportedly seized a number of shares in Bithumb Holdings belonging to Kim Byung-geon, the company’s Korea director.
Fresh reports of Indian crypto ban are ‘clickbait,’ says local source
Headline-grabbing pieces have warned that India’s parliament is preparing once again to try and ban crypto trading for good, but according to local experts, there might not be anything to worry about.
Siddharth Sogani, the founder of the Indian blockchain research company Crebaco, has described the reports as nothing short of “clickbait” — and he questioned the sources that Bloomberg had spoken to for a recent article.
Ashish Singhal, the CEO of the crypto exchange CoinSwitch, also told Cointelegraph that it is far too early for any draft bill to be presented to the country’s parliament.
He also pointed to the list of bills that is subject to discussion during the parliament’s Monsoon Session — and said a debate on banning crypto trading isn’t scheduled.
COVID-19 vaccine will spark Bitcoin crash, ‘Rich Dad Poor Dad’ author warns
Rich Dad Poor Dad author Robert Kiyosaki has claimed that Bitcoin will crash when the world finds an effective coronavirus vaccine.
On Twitter, he wrote: “What happens when vaccine is proven? Gold silver Bitcoin will CRASH. Buying opportunity.”
Nonetheless, Kiyosaki believes that gold, silver and Bitcoin remain the best investments in the long term, and he argued the biggest threat facing the American economy isn’t the pandemic, but rather the massive levels of debt that have left the U.S. “bankrupt.”
Best Cointelegraph Features
Programmable money: How crypto tokens could change our entire experience of value transfer
Writing for Cointelegraph Magazine, Andrew Singer explores the rise of programmable money — as some experts say the coronavirus “is forcing a slow-moving tsunami” in this area.
Illicit crypto transactions are getting more attention from the government
As Selva Ozelli writes, the IRS has a strong interest in receiving information from informed whistleblowers about offshore crypto accounts and criminal crypto tax activity.
DeFi and healthcare: A trillion-dollar opportunity for the taking
You may not think that decentralized finance and healthcare would go well together — but according to Pradeep Goel, there’s huge market potential.
December is proving to be another blockbuster month for Bitcoin as the flow of institutional investors injecting funds into Bitcoin continues to increase.
Business intelligence firm MicroStrategy announced that it had raised $650 million worth of convertible bonds at a rate of 0.75% due in 2025. The company now plans to invest the net proceeds in Bitcoin after identifying its “working capital needs and other general corporate purposes.”
When institutional investors show such a large appetite to buy Bitcoin (BTC) near the all-time high, it is no surprise that the corrections have been shallow.
Tyler Winklevoss said in a recent interview with CNBC that institutional investors are worried about the “oncoming inflation and the scourge of inflation with all the money printing and the stimulus from the COVID pandemic lockdowns.” Hence, they have been putting money into Bitcoin.
Today, Bitcoin price surged back above the $19,000 level and it may challenge the psychological $20,000 resistance. If this level is broken out with conviction, it may create FOMO among retail traders as many have not participated in the current rally.
If money from retail investors also starts gushing in, then Bitcoin could pick up momentum and start the next leg of the up-move.
Along with Bitcoin, there are a few altcoins that may participate in the up-move next week. Let’s study the charts of the top-5 cryptocurrencies in order to spot the critical support and resistance levels to watch out for.
BTC/USD
Bitcoin closed below the 20-day exponential moving average ($18,435) on Dec. 10 and 11. However, the long tail on the Dec. 11 candlestick shows that the bulls purchased the dip instead of panicking and dumping their positions.
The price rose above the 20-day EMA on Dec. 12 and this could have trapped some aggressive bears who went short in the past few days expecting a sharp fall. This short covering and buying by the bulls pushed the price above the descending channel today.
The price has again reached the $19,500 to $20,000 overhead resistance zone. If the bulls can thrust the price above this zone, the next leg of the uptrend could begin.
Conversely, if the price again turns down sharply from the current levels and plummets below $17,500, it could signal that a short-term top is in place. Such a move could pull the price down to the next support at $16,191.02.
The 20-day EMA has started to turn up and the relative strength index (RSI) has rebounded off the 50 level, which suggests that bulls have the upper hand.
The 4-hour chart shows an ascending triangle formation, which will complete on a breakout and close above the overhead resistance zone. This setup has a target objective of $23,576.
However, the bears are currently attempting to stall the up-move at the $19,500 resistance. If the price turns down from the current levels, the bulls are likely to buy on any dip to the 20-EMA. A strong rebound off this support will improve the prospects of a breakout above $19,500.
This bullish view will be invalidated if the BTC/USD pair turns down from the current levels and breaks below the trend line of the triangle.
A breakdown of a bullish setup traps several aggressive bulls and that could result in panic selling. If that happens, a drop to $16,191.02 may be on the cards.
ETH/USD
Ether (ETH) has broken out of the descending channel, which suggests advantage to the bulls. The price can now move up to the $622.807 to $635.456 overhead resistance zone.
The RSI has bounced off the midpoint and broken out of the downtrend line, which suggests that bulls have the upper hand.
If the bulls can push the price above the resistance zone, the next leg of the uptrend could begin. Although there could be some pit stops in between, the next target is $800.
On the other hand, if the ETH/USD pair turns down from the overhead resistance but does not give much ground, it will be a positive sign and will increase the likelihood of a breakout of the resistance zone.
This bullish view will be invalidated if the price turns down from the current levels and re-enters the channel. Such a move will suggest that the current breakout was a bull trap.
The 4-hour chart shows an ascending triangle formation, which will complete on a breakout and close above $622.807. The moving averages on the verge of a bullish crossover and the RSI is in the positive territory indicate that bulls have the upper hand.
This positive view will be invalidated if the price turns down from the current levels or the overhead resistance and breaks below the triangle. Such a move could result in a drop to $488.134.
XMR/USD
Monero (XMR) completed an inverse head and shoulders pattern on Dec. 7 but the bears quickly dragged the price back below the neckline on Dec. 9. However, the bulls again purchased the dip to the 20-day EMA ($133) and propelled the price back above $135.50 on Dec. 11. This suggests aggressive buying at lower levels.
The upsloping moving averages and the RSI above 66 suggest advantage to the bulls. The target objective of the breakout from the bullish setup is $167.
However, the bears may have other plans. They are likely to defend the psychological level at $150. If the price turns down from this resistance but rebounds off the $135.50 support, it will suggest that bulls are accumulating at lower levels.
On the contrary, if the price drops below the $135.50 support and the 50-day SMA ($124), it will suggest that the bears are back in the driver’s seat.
The 4-hour chart shows the formation of an ascending triangle pattern that completed on a breakout and close above $142.50. However, the XMR/USD pair has not picked up momentum and the price is stuck inside the $142.50 to $150 range.
If the bulls can thrust the price above $150, the uptrend could resume with the next target at $162.50. The upsloping moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside.
XEM/USD
NEM (XEM) soared on Dec. 12 and the price reached the $0.27688 overhead resistance today. The bears are currently attempting to stall the up-move at this resistance.
However, if the bulls do not give up much ground from the current levels, it will suggest that traders are not booking profits in a hurry. That could keep the price range-bound near the overhead resistance.
The upsloping 20-day EMA ($0.209) and the RSI near the overhead resistance suggest that the path of least resistance is to the upside. If the bulls can propel the price above $0.27688, the XEM/USD pair could move up to $0.3564607.
The bears are aggressively defending the overhead resistance. If the price rebounds off the 20-EMA, it will enhance the prospects of a breakout of $0.27688. The upsloping 20-EMA and the RSI in the positive zone suggest bulls have the upper hand.
Contrary to this assumption, if the price breaks below the moving averages, a drop to the trendline is possible. A break below this support will suggest that the bulls have lost their grip.
AAVE/USD
AAVE is trading inside an ascending channel. The price turned down from the $95 overhead resistance on Dec. 8, but the positive sign is that the bulls have purchased the dip to the 20-day EMA ($77).
The RSI has once again bounced off the midpoint and the 20-day EMA has started to turn up. This suggests that the correction may be over and the bulls are back in control. The first target on the upside is a retest of the $95.
If the bulls can push the price above $95, the next leg of the up-move could begin. The $100 psychological level may act as a resistance but if the bulls can drive the price through it, the AAVE/USD pair could rise to the resistance line of the channel at $112.
This bullish view will be invalidated if the price turns down from the current levels and plummets below the support line of the channel. Such a move will suggest that the trend has turned in favor of the bears.
The price turned up from $70.564, just above the support line of the ascending channel but the bears are attempting to stall the relief rally at $86.14.
If the bulls can push the price above this resistance, the pair could rise to $95. A break above $95 could start the next leg of the uptrend.
On the other hand, if the price turns down from $86.14, the pair may form the right shoulder of a possible inverse head and shoulders pattern. This view will be negated if the price dips below the $70.50 support.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Today was a relatively uneventful day for Bitcoin (BTC) as the price continues to consolidate into a tighter range.
As mentioned by Cointelegraph contributor Rakesh Upadhyay, Bitcoin price spent the weekend consolidating within a bull pennant and the breakout to $19,418 was quickly stamped out by overhead resistance.
After retouching the pennant trendline, the price gave way, falling below the 20-MA on the 4-hour time frame and briefly losing the $19,000 mark.
Generally, most traders seem to agree that after a raging 93% rally from $10,300 to $19,888, a period of consolidation is necessary. Cointelegraph analyst Micheal van de Poppe said:
“On the higher timeframe, Bitcoin is still acting as it was last week. We are still acting in the all-time high resistance zone. I still have my eyes on $16K, which we bounced from, and $14K as these areas still could be retested as support. Holding $19K is important and if we have a daily close below $18.9K I think we’ll fall through.”
On the daily and 4-hour timeframe traders will note that the price is still notching lower highs and higher lows, a sign that the price range is beginning to narrow.
Currently the price is still holding within the pennant trendline as support but a breakthrough the structure will require a high volume move as there is persistent overhead resistance at $19,500.
As mentioned in previous analysis, a drop below the $18,800 level will see BTC search for support at $17,900, and below that the $16,000 to $15,750 range.
For the short term, risk-averse traders are likely to keep a close eye on the 4-hour chart to see if the price can again find support above the 20-MA in order to burst through the pennant. It is imporant to note that this move will require signifanct volume to avoid rejection in the $19,400-$19,500 resistance zone.
Typically, during Bitcoin’s consolidation phases altcoins pump higher but that has not been the case this time.
While a selection of DeFi tokens and other obscure altcoins have moved higher, the majority of the top-20 coins are in the red today.
This is possibly due to the fact that investors are reluctant to shift funds into altcoins while the Bitcoin price is in such an indecisive position.
Experienced crypto investors know that a strong bullish breakout from BTC could result in altcoin-to-BTC pairs being crushed, whereas a bearish breakdown in BTC price tends to result in BTC and USD altcoin pairs receiving an equally catastrophic pummeling.
A few standouts of the day are, AAVE with a 8.54% gain, Monero (XMR) which moved 5.19% higher and Waves (WAVES) which has rallied 6.23%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $566.5 billion and Bitcoin’s dominance index currently at 62.6%.
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