There Might be a Change in the Trend of the Bitcoin Price

Alexander Salazar
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There Might be a Change in the Trend of the Bitcoin Price

The SOPR failed to overtake one, suggesting another breakout attempt before confirming whether a low would occur. The RHODL ratio above 350 indicates that Bitcoin is in an oversold area, which might precede a rise.

The price of Bitcoin (BTC) has not been able to recover the USD 25,000 level, maintaining momentum around USD 24,000.

The daily chart shows that Bitcoin has risen by 6% while losing 1% over the last week, which suggests a consolidation period.

Bitcoin is trading at around USD 23,884 and has accumulated a 3% loss over the last week. While its daily trading volume is above USD 26.88 billion, its market capitalization is about USD 456.77 billion, according to CoinGecko.

The price dropped by 1.2% to USD 23,884 over the last 24 hours, proving that Bitcoin always makes unexpected moves.

However, the Spent Output Profit Rate (SOPR) and the Realized HODL (RHODL) signal a setback in the trend.

The SOPR Analysis of the Price of Bitcoin

The SOPR is an on-chain indicator that suggests whether the market is making a profit or a loss. The readings above 1 indicate that it is gaining, while those below 1 show it is losing.

In January 2018, the SOPR dropped below one, indicating the end of a bullish trend. Then it bottomed out in December of that year, broke again in May 2021, and reached 0.928 the following month.

On August 5th, it failed to overtake one, suggesting that the indicator is ready to make another breakout attempt. The confirmation of the low will occur if the SOPR exceeds one.

The RHODL Report on the Price of Bitcoin

The ratio of one week to 1-2 years of HODL wavebands form the RHODL metric. A mark above 50,000 suggests that short-term holders hold a significant portion of the BTC supply.

The RHODL ratio is above 350, positioned at 360, which indicates that Bitcoin is in an oversold area. On August 11th, the ratio dropped below 350 before it could rise.

There is a market bottom whenever there is an upward or downward sign near 350. The relationship will rebound if the marks hold, thus confirming a low.

Despite the Consolidation near USD 24,000, the Trend Is Unclear

BTC is trading inside a short-term corrective pattern, but the short-term direction is not yet clear.

Last month, the price of Bitcoin left a descending resistance line in place since late March. There was a relatively weak reaction after the breakout. The cryptocurrency could not reach the Fibonacci retracement resistance level of 0.382.

Although BTC recently reached a local high of USD 25,211, it has created a long top wick and remained bearish.

The price has broken the bullish divergence trend line on the daily RSI preceding the upward move, which often occurs before price declines.

If the value of BTC continues to fall, the closest support area might be at USD 21,550. However, it is a matter of time before knowing how the market will behave and where the price will move next.

By Alexander Salazar

The Price of BNB Might Drop toward USD 275 before Making a Bullish Move

Alexander Salazar
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The Price of BNB Might Drop toward USD 275 before Making a Bullish Move

Since the weekly RSI has broken out of the descending resistance line, BNB might rise above the USD 335 level. A recent chart indicates that the price might have started a long-term 5th wave that could lead to a new all-time high.

The weekly and daily charts show that Binance Coin (BNB) is bullish and may have reached a long-term low.

BNB has been primarily bearish since its all-time high of USD 691.80 in May 2021. After reaching a lower high in November 2021, it dropped toward its low of USD 183 in June.

The value of BNB has increased since then, which validated the support around USD 225.

A local high of USD 336.80 initially caused a rejection of the support at USD 335, which may have become a resistance.

The weekly RSI has broken out of the descending resistance line since the all-time high, which usually occurs before price spikes.

Therefore, the price of BNB might break above the USD 335 level and accelerate after that.

A Break in the Bullish Trend is Underway

The daily graph also shows a bullish outlook, in line with the weekly chart. In late July, the price of BNB left a descending resistance line active for 264 days. However, the price broke the RSI upward trend line accompanying the breakout.

That might lead the price to drop toward the ascending support line that has been in place since June 18th. It is currently at USD 275 but should continue after the upward move.

The BNB Wave Count Analysis

XForce Global, a cryptocurrency trader, recently shared a chart of BNB on his Twitter account. The graph indicates that the price might have started a long-term 5th wave that could allow it to reach a new all-time high.

According to the most likely long-term count, BNB started the fifth and final wave of the momentum beginning in December 2018.

Reasons Why That Is the Most Likely Wave Count

The bottom of the 4th wave occurred in a parallel channel connecting the highs of waves one and three. Besides, it appears projected onto the bottom of wave two.

Furthermore, the decline from the all-time high is an ABC structure, as waves A and C have an exact 1:1 ratio.

The price of BNB might reach a new all-time high if that is the correct count. A tentative target for the top of this move lies in the middle of the channel hovering around USD 2,000. A decline below the fourth wave low of USD 183 would invalidate that wave count.

BNB is trading at around USD 316 and has accumulated a 2.6% loss over the last week. While its daily trading volume is above USD 1.07 billion, its market capitalization is about USD 51.81 billion, according to CoinGecko.

Investors should research BNB or any other crypto asset before buying it to know its all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to avoid the risk of losing money.

By Alexander Salazar

Solana Publishes Report on the Decentralization Level of its Blockchain Network

Audy Castañeda
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Solana Publishes Report on the Decentralization Level of its Blockchain Network

The Solana Foundation has published the first report on the level of decentralization of its Blockchain network. The “Nakamoto coefficient” of the network is low, but the Foundation claims that this is due to the use of the PoS method.

The Solana Foundation (SOL) has published the first report on the level of decentralization of its Blockchain network.

Solana was one of the most outstanding crypto projects in 2021. Its Blockchain became the home of several protocols from the most varied segments of the industry, especially Web 3.0 and NFT, where it came to threaten the strong dominance of Ethereum (ETH). Due to this, its native token has accumulated an appreciation of approximately 20,000% in the year.

On the other hand, this year has not seen the same success. In addition to the sharp falls in the market, which caused SOL to collapse 80% from its maximum, its network was the target of several hacker attacks, some of which caused millions in losses.

Recurring incidents and problems raise questions about the level of security and decentralization of the Blockchain. In response, the Solana Foundation published a new report on its ecosystem and community of validators.

Solana and its Validators

According to the report, the Solana network currently has more than 3,400 validators, spread across six continents. They play an “essential role in maintaining a resilient, distributed, and credibly neutral network,” being responsible for verifying transactions made by users and storing their records in their Blockchain ledger.

All these validators are classified into consensus nodes and RPC nodes. While the former create and propose new blocks to the network after the blocks have been verified, RPC validators provide an “application gateway” for specific projects, in addition to performing the same functions as consensus nodes.

Currently, the “Nakamoto coefficient,” a metric used to report the minimum number of validators needed to compromise the network, is 31.

The Solana Foundation argues that this low ratio is due to its Proof-Of-Stake (PoS) mechanism, which puts greater leverage on users who stake their SOL tokens.

Coincarp data shows that there are more than 9 million SOL holders, with just 100 users holding more than 30% of the total asset supply. Despite this high circulation, none of the major node operators come close to exceeding the 33% active participation required to corrupt the network.

Improvements are in the Air

In order to further increase the decentralization of its network, the Solana Foundation announced a partnership with Jump Crypto, a company specializing in infrastructure for Web 3.0; they plan to create a new validator client which will help prevent one group of validators from taking over, as well as ensure greater stability for the network as a whole.

Jump Crypto also notes that it will “propose significant updates to Solana’s open source core software.” A company representative of Decrypt pointed out that Solana’s “performance is not currently limited by hardware, but by software inefficiencies” and that improvements need to be made to increase its scalability.

“By adding more top contributors like Jump Crypto, the network can maintain its status as the best place to build on Web 3.0, while scaling to billions of users,” said Solana co-founder Anatoly Yakovenko.

By Audy Castaneda

While Celsius May Promote Mined Bitcoins, the IRS May Summon John Doe over a Crypto Broker

Alexander Salazar
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While Celsius May Promote Mined Bitcoins, the IRS May Summon John Doe over a Crypto Broker

The creditors of Celsius prevented Celsius from selling Bitcoin, fearing the company might take advantage of it for its benefit. The IRS seeks information on SFOX users making at least USD 20,000 worth of crypto assets, which they did not report.

The US Court allowed cryptocurrency loan provider Celsius to promote mined bitcoins, but the Department of Justice (DoJ) opposed the ruling.

The bankruptcy system and the method of Celsius met again to solve various issues about its operations. The focus has been primarily on restructuring the facility to pay the debts with which it has been dealing.

The lawyers of Celsius stated that the firm might have lending partners to finance the bankruptcy but did not provide any details. Besides, they said that the cryptocurrency loan provider wanted to increase investment in Bitcoin mining to overcome difficulties.

The company revised its proposal to clarify that it would store the proceeds from selling the mined Bitcoin separately from its fund management program. They said it would satisfy several creditors whose assets are subject to bankruptcy.

The Ruling of the Court Finds Opposition

During a Chapter 11 bankruptcy hearing over the last week, the creditors prevented Celsius from selling Bitcoin. They feared that the company might take advantage of that practice for its financial purposes.

Shara Cornell, Commissioner of the US Department of Justice, stated there was insufficient clarity to approve Celsius. She shared on Twitter that transparency regarding expenses like those for operating the mining rigs was what mattered.

Despite the difficulties of creditors and the pressure from the Department of Justice, Judge Martin Glenn granted Celsius permission to promote BTC.

Before filing for bankruptcy, Celsius Mining planned to increase the number of its miners. In 2021, Celsius Network mined 114 BTC, equivalent to USD 74. They might create 15,000 BTC by 2023 if the growth strategy continues.

The offer approved in the hearing occurred after the law firm Kirkland & Ellis said that Celsius would run out of funds by October 2022. Therefore, that opportunity may serve as an alternative to help the company partially release its debt of up to USD 1.2 billion.

However, the launch of Bitcoin by Celsius will undoubtedly put considerable supply pressure on the pioneering cryptocurrency.

The IRS Has Permission to Summon John Doe over a Crypto Broker

A Californian federal judge has allowed the Internal Revenue Service to summon John Doe over crypto broker FOX Inc.

The Internal Revenue Service (IRS) seeks information on US taxpayers making at least USD 20,000 through crypto transactions, which they did not report.

The government agency is looking for records on Americans who have done business through SFOX Inc. Those users of the California-based crypto broker have not disclosed the funds on their tax returns.

Deputy Attorney General David Hubbert of the Tax Division of the DoJ said the information required would ensure that cryptocurrency owners comply with tax laws.

Bitcoin is trading at around USD 23,884 and has accumulated a 3% loss over the last week. While its daily trading volume is above USD 26.88 billion, its market capitalization is about USD 456.77 billion, according to CoinGecko.

By Alexander Salazar

SBF: Tokenization and Blockchain Bring Utility to Cryptocurrencies

Audy Castañeda
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0
SBF: Tokenization and Blockchain Bring Utility to Cryptocurrencies

Sam Bankman-Fried (SBF) pointed out that the blockchains behind cryptocurrencies have the potential to revolutionize remittances around the world. He argued that cryptocurrencies have the technology to create more underlying networks providing the opportunity to design more payment networks.

The CEO of the FTX exchange, Sam Bankman-Fried (SBF) revealed that cryptocurrencies “have specific use cases” that support their utility and power, such as for tokenizing assets and making digital transactions and payments.

SBF emphasized the following to the Point Forward podcast:

“In essence, one of the things that cryptocurrencies are is a way to tokenize assets. And that’s obviously what happened with Bitcoin, it had a digital asset that anyone could access and anyone could easily transfer to each other. And you could think of it like gold, but you don’t have to deal with gold bullion, much cleaner, and easier access and full auditable transaction history.”

Blockchains’ Potential

For Sam Bankman-Fried, the Blockchains behind cryptocurrencies have the potential to revolutionize remittances around the world and could make the market massive, which continues to “suffer from high fees,” as well as the underlying networks that provide the opportunity to design more payment networks.

“That’s one side. Another aspect is the Blockchain, it’s the underlying networks, which are really cool, and what they are is, among other things, a way to have a complete network where anyone can come in and open an account, anyone can send assets to anyone else instantly, at low cost, completely online, at the click of a button. Full ledger history of all this. It is a kind of perfect payment network to a certain extent.”

The CEO of FTX recalled that Blockchain technology has made different industries more efficient and allowed “cleaner” business models, by providing transparency and a fully digitized work scheme, with easier transactions, creating digital items, among other options.

SBF’S Hindsights

Sam Bankman-Fried has been one of the most enthusiastic about the bear market, claiming that it is temporary and that some projects and cryptocurrencies will come out stronger, and he is one of the least affected, as is FTX. In August, he argued that the worst of the crypto winter is “over” as long as there are no macroshocks.

SBF’s FTX has dodged most of a somewhat cold winter that has left some companies exposed and cold. Voyager Digital, Celsius, Babel Finance, and Three Arrows Capital have all experienced a freeze that has left some investors desperate to get their deposited funds back.

Even in July, SBF said that he and his exchange still had “a few billion” dollars available to help support struggling crypto businesses.

“Having confidence with consumers that things will work as advertised is incredibly important, and if it breaks, it’s incredibly difficult to get it back,” he said. However, he believes the worst of the liquidity crisis is probably over, adding that the industry has moved beyond “other big shoes that have to fall.”

By Audy Castaneda

The Use of Bitcoin for Online Casinos Offers Many Disadvantages to Gamblers

Alexander Salazar
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0
The Use of Bitcoin for Online Casinos Offers Many Disadvantages to Gamblers

Since Bitcoin prevents the risk of third-party intermediaries, gamblers do not need to worry when transferring or withdrawing money. BTC is a P2P cryptocurrency with no spreads, which makes the gambling process easier, faster, and more transparent.

Online payment with Bitcoin (BTC) eliminates the need for credit card companies, allowing funds to go directly to the recipient. The pioneering cryptocurrency is the safest, as it avoids the risk of financial intermediaries while offering many advantages.

In the case of online casinos, the use of Bitcoin, a decentralized, unregulated and uncensored crypto asset, has increased. That has happened because users make transactions through a public ledger system instead of a third-party intermediary.

According to recent statistics, BTC has become increasingly popular in online casinos, encouraging their rapid growth.

Some Advantages of Using BTC for Online Gambling

Regarding online gaming, Bitcoin offers the possibility of security, speed, and anonymity. Those thinking of that activity as a source of income should consider the pros and cons of the cryptocurrency.

Satoshi Nakamoto created BTC to be a better form of currency with no fees, making it different from fiat money. Although some wallets charge for transactions, the cost is usually less than a few cents.

Since Bitcoin does not have central banks, people can send and receive funds with almost anyone regardless of location. That is a significant advantage as many governments are against unregulated economies and may destroy that market.

Bitcoin also prevents the risk of third-party intermediaries, making transactions secure and fraud-proof. Therefore, users do not need to worry when transferring or withdrawing money at an online casino.

Other Advantages of Using the Pioneering Cryptocurrency

The leading cryptocurrency offers the advantage of low diffusion, as most online casinos use the house edge as the spread. Since Bitcoin is a P2P cryptocurrency, users do not have to deal with hidden fees and spreads. That allows for easier, faster, and more transparent overall gambling.

Another benefit is that Bitcoin has no hidden costs, unlike traditional credit cards, which charge fees for any transaction. That is an advantage when playing online, as gamblers have more money in their bankroll and can make more bets.

Bitcoin holders do not have to worry about identity theft when using the cryptocurrency for online gambling. They only need a wallet containing a key for their coins, which allows them to send and receive money anonymously.

Finally, Bitcoin is a decentralized crypto asset that operates without third-party intermediaries, unlike fiat currencies. Therefore, users conduct trusted transactions between sender and recipient since no entity controls them.

BTC is trading at around USD 24,978 and has accumulated a 0.7% gain over the last week. While its daily trading volume is above USD 26.37 billion, its market capitalization is about USD 458.54 billion, according to CoinGecko.

By Alexander Salazar

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