Could Ethereum Hit $10,000?

Audy Castañeda
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Could Ethereum Hit $10,000?

Ethereum could reach $10,000 in the coming weeks due to the formation of an ascending triangle.

The possible emergence of an ascending triangle in the price of Ethereum could push the second most important cryptocurrency in the market towards $10,000 in the coming weeks. In addition, it accumulated 18.36 million new addresses in its Blockchain in 2021, according to Yashu Gola, as reported by Cointelegraph.

Ascending triangles are bullish continuation setups that appear during an uptrend. Analysts confirm its presence after the price rises within an ascending right triangle structure, thus forming a sequence of lower highs at the lower trend line with resistance at the upper one. As the pattern develops, volumes typically drop.

What the Weekly Charts Show

Until now, Ethereum has been forming a similar bullish pattern on its weekly chart. In detail, the lower trend line of the triangle has been acting as an accumulation range since early 2021, with high selling pressure at the upper trend line.

A basic tenet of ascending triangle patterns is that they can precede a significant price rally, as much as the maximum distance between the upper and lower trend lines, when measured from the breakout level.

Applying the same feature to the ascending channel, it can experience a decisive breakout towards $10,000. On higher timeframes, another technical pattern paints a bullish target of $4,000.

Wolf, an independent market analyst, also anticipated Ethereum to rally in the coming sessions, followed by a prolonged recovery move due to a possible inverse head and shoulders pattern.

The bullish triangle setup emerges as Ethereum maintains its gains after bottoming near $2,150 in January 2022. In doing so, ETH/USD is up more than 25% in less than four weeks.

However, some analysts see the ongoing recovery rally in the Ethereum market as a bull trap, that is, a reversal that could force investors on the wrong side of the price action to liquidate their positions at unexpected losses. One of them is TT.TreeReader, now TT, a market commentator based on TradingView.

Leaving the ascending triangle aside, TT focused on a downward sloping trend line that has acted as resistance since November 2021.

Nonetheless, since it is trading below the given price high, its momentum indicators, primarily the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic RSI, have been trending up.

As a result, there has been confirmation of a bearish divergence between its price and its momentum, a pattern that usually leads to a price reversal. If such a move occurs, TT noted that the price could drop to as low as $2,300.

The Growth of the Ethereum Network

Despite a mixed outlook, the metrics of the Ethereum network tell an upbeat story. For example, Ethereum attracted around 18.36 million new addresses to its network in 2021 at a rate of 1.53 million per month, reflecting steady user growth.

Meanwhile, data from Glassnode showed that the number of Ethereum addresses holding at least 1 ETH also hit a record high in early February, reaching 1.42 million on the ninth day of the month.

Ethereum is trading at $2,700 and the location of the moving averages, the 70-period one above the 200-period one, would give us a bullish signal. This would happen although the first is heading with the intention of crossing below the second.

By Audy Castaneda

Danish Programmer Thinks that Western Democracies Need Cryptocurrencies

Alexander Salazar
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Danish Programmer Thinks that Western Democracies Need Cryptocurrencies

Cryptocurrency detractor Hansson reconsidered his position on Bitcoin as he realized that everyone defending it is a prophet. A recent survey reveals how investors view cryptocurrencies optimistically despite the recent drop.

Canada froze Bitcoin wallets and bank accounts related to the protests against the COVID-19 vaccine, thus driving the adoption of cryptocurrencies. Some detractors of cryptocurrencies like David Heinemeier Hansson are even reconsidering their position on Bitcoin. The creator of web framework Ruby on Rails told his Twitter followers that he was no longer a Bitcoin skeptic.

Hansson expressed that the protest proved that every Bitcoin defender is a prophet. He admitted that he was wrong about the fundamental need for cryptocurrencies in Western democracies.

The programmer mentioned that he had been skeptical about Bitcoin and the crypto industry in general since the early 2010s.

Overview behind the Russian Bill for Regulating Cryptocurrencies

The Government of the Russian Federation received a bill for regulating cryptocurrencies from the Ministry of Finance, according to a Russian government website.

However, the official release reminded Russians that using cryptocurrencies as a payment means remains illegal. The bill aims to regulate cryptocurrencies as an investment instead of money.

In addition, some proposed regulations include putting exchanges under the control of a centralized agency. They also require identifying all customers and only allowing cryptocurrency withdrawals or deposits through a bank account. The Ministry of Finance considers the KYC protocol crucial for exchanges and customers, while banks also comply with the requirements for cryptocurrencies.

Traders cannot freely enter the industry since the bill proposes to test potential investors on knowledge and cryptographic risk. Some reports indicate that the results will decide how much money they can invest.

There Is Still Optimism about Cryptocurrencies despite Bearish Sentiment

A recent report from Deutsche Bank provides hope to the current market climate. The survey behind the study reveals how investors tend to view the market despite the recent drop. Likewise, it indicates that there is still optimism about Bitcoin and other cryptocurrencies.

That survey shows that a growing number of cryptocurrency investors lean towards long-term holding rather than selling. Most said they would keep their holdings even if crypto-assets lost much of their value.

They also expressed that they plan to hold onto their coins amid the worst downward trend in the market. Less than half said they would scale back or leave the market if the price fell below 80%. Most decided to keep their holdings regardless of the unfavorable situation in the market.

Marion Laboure, director of macro strategy at Deutsche Bank, stated that there is currently strong optimism about cryptocurrencies. She noted that prices fell by 80% in a very bearish cryptocurrency market. However, she highlighted that less than half of investors would reduce their investments or leave the market.

Cryptocurrencies like Bitcoin play a relevant role in the economy, and a growing number of investors are interested in them. Even skeptics like David Heinemeier Hansson have become aware of the advantages offered by digital assets. Meanwhile, regulators from several countries limit their use as payment means and impose the compliance of some requirements.

By Alexander Salazar

It Is more Affordable to Mine One Bitcoin than to Buy It

Alexander Salazar
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It Is more Affordable to Mine One Bitcoin than to Buy It

The cost of mining 1 BTC is a formula to determine how profitable mining is. That activity helps maintain the Bitcoin network and allows those doing it to get their rewards faster.

Miners need to consider many variables like the cost of investment in equipment and its maintenance to do their activity. However, a formula developed by the Braiins firm indicates that mining 1 BTC is cheaper than buying it.

The cost of mining 1 BTC with high-performing equipment is lower than acquiring it in the Bitcoin trading market.

The Braiins firm said that 1 BTC obtained with those machines would cost USD 13,000, while worth around USD 37,000 on exchanges.

In other words, winning one Bitcoin through mining costs USD 24,000 less than buying one Bitcoin on the market at the current trading prices.

Calculating the Cost of Mining 1 BTC

Braiins considers several factors to calculate the profitability of mining regarding the cost of mining 1 Bitcoin.

They explained that the following parameters influence: the Bitcoin price, the mining difficulty of the network, the hash rate used, the transaction rates paid, the fees of the Mining Pool, and equipment maintenance costs.

Those elements allowed Braiins to establish how much it would cost a miner to accumulate the rewards of a pool until gathering 1 BTC. He certainly needs to deduce the cost of electricity and maintenance from the processing power used. The above variables also influence, depending on each particular miner.

That formula includes the initial purchasing cost of mining hardware. A high-performing miner could cost up to USD 15,000, leaving the cost of obtaining 1 BTC in USD 28,000. The current price of the pioneering cryptocurrency is around USD 37,000 in the market.

Everything Is as Good as It Seems for Bitcoin Mining

Nobody has said that a miner can get 1 BTC in a short time by himself. According to the above data, it would take that miner six and a half years to obtain 1 BTC.

It is necessary to consider the difficulty of the network changes alongside the hash rate of miners. A growing number of miners connect to the network and contribute their processing power. That will make it cryptographically harder to generate transaction blocks on Bitcoin.

That mechanism prevents a miner with much power from making attacks against the Bitcoin protocol. Likewise, if the hash rate decreases because some miners have disconnected their equipment, Bitcoin reduces its difficulty. In that way, the remaining miners can continue to confirm transactions optimally and efficiently.

Some other factors can influence the profitability and functioning of Bitcoin mining equipment. They include the temperature of the environment and equipment, the efficiency of the mining software, the pool to which it belongs, electricity blackouts, and the Internet connection failures.

The above information leads to seeing the advantages of mining Bitcoin over buying it. For that reason, Chinese miners have looked for opportunities to find places with adequate conditions to operate their business. They can make high profits with the cryptocurrency in the long term.

By Alexander Salazar

Former SEC Executive Guaranteed that Ripple has an Excellent Opportunity of Winning the Lawsuit against the Entity

Jenson Nunez
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Former SEC Executive Guaranteed that Ripple has an Excellent Opportunity of Winning the Lawsuit against the Entity

According to Joseph Hall, a former Policy Manager for the Entity, Ripple has the advantage in this legal fight against the SEC. Although he argues that the Blockchain Company could win the dispute, the trial seems far from reaching an end.

Former executive policy manager for the SEC, Joseph Hall, highlighted that in the case of Ripple, which is currently under legal dispute in court, the Blockchain services entity has all it requires to win this legal fight.

This information got highlighted by Hall during an interview for Thinking Crypto that appeared on the media last Monday, where the former SEC representative explained that Ripple had achieved many goals in the legal dispute it has sustained with the SEC since 2021. According to the former representative, the accused party’s arguments, evidence, and indications are pertinent.

Regarding Ripple’s allegations, Hall highlights that the company initiated activities in 2012 and pre-sold its token, XRP, in 2013. However, the SEC’s accusations appeared in 2020, seven years after digital assets got released. Therefore, the regulatory Entity’s former representative can’t see the agency’s intentions.

Ripple Keeps Winning

The SEC identified Ripple CEO Brad Garlinghouse Christian Larsen for carrying out transactions of at least $1.4 billion worth of the XRP token through an apparent unregistered securities offering. However, throughout the trial, the representatives of the company and the defense defended their stances and believed that digital currency is not a security, so the statements were invalid.

Ripple has achieved some small victories that add to a vast advantage against the SEC. These little achievements include access to files and emails from the regulatory Entity about important subjects, especially connected to the regulatory view towards currencies like Ethereum and even exchanges, and discrediting the allegations of relevant actors for the legal dispute.

On repeated occasions, Garlinghouse pointed at this trial as a transcendental fight for the crypto world since the verdict of the case will establish a vital precedent on the definition that cryptocurrencies and the entities behind them will have.

Against this stance, Hall that “the entire regulatory project of the SEC could be closed if they lose on the merits, and I think there is a good chance that they lose this way.”

We Still Need to See the End of this Case

Concerning the end of all this dispute, Hall clarifies that this situation is far from reaching an end in 2022, so it could extend its tentacles until 2023. Hall points out that legal disputes are slow, and appeals can always come to terms regardless of the outcome of the district-level in which the Lawsuit currently is.

Therefore, he believes that this could take much longer than initially contemplated, and there is the possibility of approaching a mutual agreement. Still, Ripple abandoned this possibility and claimed to run with the fight until the end.

By: Jenson Nuñez

Mexico Should Adopt Bitcoin as Legal Tender, Says Mexican Senator Indira Kempis

Alexander Salazar
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Mexico Should Adopt Bitcoin as Legal Tender, Says Mexican Senator Indira Kempis

Many other countries want to follow in the footsteps of El Salvador regarding Bitcoin. Mexican Senator Indira Kempis urges her nation to adopt the pioneering currency as legal tender.

There have been positive reports about the impact of Bitcoin adoption in El Salvador. A Mexican senator has urged her country to follow the Salvadoran example regarding the leading cryptocurrency.

Indira Kempis, a Mexican senator representing Nuevo León, believes that Bitcoin should be legal tender in the Spanish American country. The official argued that its adoption could potentially boost financial inclusion worldwide.

The senator is preparing a cryptocurrency bill based on the Salvadoran Bitcoin Law. Kempis said she hopes to introduce the draft law to the Mexican Congress this year. She made those comments after visiting El Salvador a few weeks ago.

A UK-Based Law Firm Accepts Cryptocurrencies as a Payment Means

A law firm from the UK now receives Bitcoin and other cryptocurrencies as a means of payment for its services. The company partnered with an FCA-approved cryptocurrency exchange to accept Bitcoin and Ether. Those two crypto assets are the largest by market capitalization, according to CoinGecko.

The CFO of Gunnercook, Naseer Patel, said that this is the first time a UK law firm allows for payments with cryptocurrencies. He considers that this will benefit many people in different jurisdictions. He also stated that those digital assets would offer their partners the flexibility to receive payments securely.

Grayscale Supports Investors to Express their Opinion on the SEC before Investing in BTC

The CEO of Grayscale, Michael Sonnenschein, plans to launch a support campaign for US investors to express their thoughts to the SEC. The latter would do that before the government agency decides what to do about the Bitcoin investment vehicle.

On October 19th, NYSE Arca requested the regulatory agency to list the shares of the Grayscale Bitcoin ETF under ticker GBTC. The Securities and Exchange Commission has delayed on two occasions: December 15th and February 4th.

Sonnenschein stated that the campaign aims to educate and inspire investors to give their opinion about that crucial decision.

The US Secret Service Launches a Cryptocurrency Awareness Center

The US Secret Service recently launched a cryptocurrency awareness center featuring a public service announcement video.

The federal agency said that the objective of that educational tool is to fight the illegal use of crypto assets. They added that it provides public awareness information on the security of digital assets and how to ensure maintaining it.

Jeremy Sheridan, the Deputy Director of the US Secret Service Bureau, stated the center focuses on investigating financial crimes. He explained that it seeks to identify, arrest and prosecute those engaging in cryptocurrency-related crimes. However, their language and tone when referring to crypto-assets like Bitcoin were positive.

The relevance of Bitcoin and other cryptocurrencies is increasingly evident, which regulators and business people worldwide do not overlook. While some legislators urge their governments to adopt them, others seek to control or ban their use as money. Besides, a growing number of companies are accepting crypto assets as a means of payment.

By Alexander Salazar

Panama Is Debating Two Bills to Regulate Bitcoin and other Cryptocurrencies

Alexander Salazar
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Panama Is Debating Two Bills to Regulate Bitcoin and other Cryptocurrencies

The draft law introduced by Congresswoman Cenobia Vargas includes using a token accused of being fraudulent. The bill by Senator Gabriel focuses on attracting investors and entrepreneurs who focus on the digital economy.

The Panamanian National Assembly has been the epicenter of debates about the regulation of Bitcoin (BTC) and other crypto assets since 2021.

There have been several discussions about two bills to legalize cryptocurrencies in the Central American country. The Trade and Economic Affairs Committee of Parliament recently resumed studies on combining those legislative proposals. They previously transferred the debate to the plenary session of the National Assembly for them to decide on the matter.

The Panamanian National Assembly reported that it created a subcommission to unify the criteria of Bills 696 and 697. The first regulates the use of cryptocurrencies and everything related to blockchain as payment methods in Panama. The second, Crypto Law, allows Panama to be compatible with the digital economy.

Both Draft Laws Have Different Approaches

Although both legislative proposals address the regulation of Bitcoin and other cryptocurrencies, their approaches are different.

Congresswoman Cenobia Vargas proposed Bill 696 in August 2021. In addition to Bitcoin, that law recommends regulating Ether (ETH) and the stablecoin Tether (USDT). They also include other types of tokens, such as non-fungible tokens (NFT) and the controversial 7even Utility Token (7UT).

Vargas said that she recommended using 7UT as a means of payment in businesses in Panama. However, that caused alarm in the Digital Camera and Blockchain of the Central American country. The organization warned of a potential risk of fraud with 7UT, as they identified its links with former promoters of the OneCoin Ponzi scheme.

As for Bill 697, independent congressman Gabriel Silva introduced it in September 2021. The 33-page document establishes that only Bitcoin and Ether cryptocurrencies should receive legal status.

However, the text also proposes to attract investors and entrepreneurs who focus on the digital economy.

Steps to Follow for the Approval or Rejection of the Draft Laws

Members of the Trade and Economic Affairs Committee are currently discussing two options. They must decide between combining both laws or choosing one of them for debate by the National Assembly.

Each parliamentarian defends their respective bills and answers questions from members of the Committee. After that, the latter will decide between combining the draft laws or choosing only one.

The Parliament would then develop a second discussion of the law, in which they must approve it to advance their vote. If the result is positive, its approval or rejection will be up to the president of Panama.

Bitcoin plays a relevant role in the economy, which leads regulators in countries like Panama to seek its legalization. Of course, the National Assembly of that country must follow some steps to make that possible.

The pioneering cryptocurrency is trading at around USD 35,978 and has accumulated a 7.2% loss in the last 24 hours. Its daily trading volume is above USD 33.88 billion, and its market capitalization is about USD 682.42 billion, according to CoinGecko.

By Alexander Salazar

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