Bitcoin’s intense selloff has slowed over the past 24-hours, with bulls garnering some notable buying pressure within the lower-$8,000 region, subsequently leading BTC to enter a short-term bout of consolidation around $8,600.
Although bulls have shown some signs of strength during this latest leg down, it is important to keep in mind that its price action over the past week has been bear-favoring, and its deep retrace from its yearly highs seems to suggest its bullish market structure may have been invalidated.
Now, top analysts are noting that an incredibly strong resistance level that exists just a hair above BTC’s current price region may be enough to spark a major selloff.
Bitcoin Consolidates as Analysts Eye Multiple Key Levels
At the time of writing, Bitcoin is trading down nominally at its current price of $8,660, which is around where it has been trading at for the past 24-hours.
The cryptocurrency’s ongoing selloff first began last Sunday when it ran to highs of $10,000 before facing a swift rejection at this level, with bull’s inability to recapture its position above this level being a grave sign for the crypto.
Analysts are now noting that how BTC responds to this ongoing bout of sideways trading should offer insight into where the markets will trend next.
Crypto Micahël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that a break below Bitcoin’s current price level could lead it to drop as low as $7,500.
“Bitcoin: At this point, remaining fairly unchanged in the perspectives. Holding here and I assume $9,000-9,200 retest is likely. Losing it and I’d be pointing $7,500-7,700,” he noted.
BTC Could Provide a “Golden” Short Opportunity if it Taps This Level
Teddy, another popular cryptocurrency analyst, believes that Bitcoin’s recent price action has firmly invalidated its bullish market structure for the time being, leading him to believe further downside is imminent.
He also notes that a movement towards $9,150 could be a “golden” short opportunity for traders, with a rejection at this level sparking intense downside.
“BTC: Brutal breakout, supports were annihilated – clear bear bias of price structure. Currently consolidating in a down channel, historically they break upwards – 9150’s rejection will be a golden short opportunity. Retest of previous support as resistance?”
If Bitcoin fails to garner any upwards momentum, or faces another firm rejection, prior to its weekly close tomorrow, it could mean further downside is inbound.
An Irish drug dealer has lost €55 million ($59 million) in bitcoin after his landlord accidentally threw away a case containing the codes to access his wallets.
According to a report by the Irish Times, 49-year-old Dubliner Clifton Collins amassed a fortune in bitcoin between 2011 and 2012 using funds obtained from illegally growing and selling marijuana. Collins purchased more than 6,000 BTC, which was trading for less than $5 at the time.
Collins was arrested in 2017 for the possession and sale of cannabis and sentenced to five years in prison. Prior to his arrest, he had hidden the codes for twelve separate bitcoin wallets, each containing 500 BTC, inside the aluminum cap of a case containing his fishing rod. The case was stored in his rented home in Farnaught, Cornamona, Co Galway.
Collins’s landlord eventually sent the majority of his possessions to the local landfill during his prison stay, including the fishing rod case containing the secret codes.
While Ireland’s Criminal Assets Bureau (CAB) has since confiscated the twelve accounts, the €55 million in bitcoin is inaccessible without the codes. Workers at the local dump told officers they remember seeing discarded fishing gear, however, the waste was eventually moved to Germany and China.
Collins says that he has come to terms with the loss of his funds, and regards it as punishment for his actions.
On February 28, Bitcoin Cash (BCH) proponents were introduced to a new platform called Bitcartcc. The project is a self-hosted open source payment processor that allows merchants to accept bitcoin cash easily. Bitcartcc was created because the developers behind the popular application Btcpay refuse to add support for BCH. Bitcartcc was built so anyone can leverage a “light and fast solution” for accepting bitcoin cash payments.
Bitcartcc: Self-Hosted, Open Source Payment Processor With Bitcoin Cash Support
A new self-hosted open source payment processor called Bitcartcc was unveiled on Friday, as the application’s creator announced the project via the read.cash blog. The developer’s announcement explained that the well known Btcpay server, another open source payment processor, refuses to implement bitcoin cash (BCH) support and they believe the organization won’t be adding BCH anytime soon.
Because of Btcpay’s stubborn refusal, Bitcartcc’s creator decided to construct an alternative. The project was also spawned because Bitcartcc’s programmers wanted to accept cryptocurrencies with their newly developed Telegram bot without any fees. “We had limited funding [and] we needed a light solution too,” the Bitcartcc developer wrote on Friday. “Btcpay didn’t work, nothing did,” he added. The creator of the self-hosted Bitcartcc platform also stated:
[Bitcartcc] is a light and fast solution for accepting cryptocurrency payments in your stores and apps, now supporting Bitcoin Cash — It is a self-hosted solution too, so you can be free of third-party for even just $3.5 a month, or even cheaper.
Bitcartcc’s documentation shows a number of deployment methods people can use with the application like CLI, GUI, and a Telegram bot. It suggests hosting options like Lunanode, Azure, Google, Docker, hardware deployment, third-party hosting, Raspberry Pi deployment, and manual deployment. The types of people and groups who could utilize Bitcartcc include online merchants, and physical brick-and-mortar retailers. Bitcartcc can also provide benefits to those working with freelancer payments, invoices, bill pay, charities, local payment processors, exchanges, developers, hosting providers, and even offchain Lightning Network payments. Bitcartcc highlights the attributes of the open source self-hosted solution which also includes:
Saving money (no fees, no subscriptions)
Cutting out the middleman (payments go directly to your wallet)
Enhancing privacy for you and your customers (no address re-use, no IP leaks to third parties)
Saving time (easy integration and installation)
Protecting yourself from interference in your business (self-sovereignty)
Decreasing the development time as we have ready solutions available for any kind of store
Bootstrap an Online or Physical Store in Seconds
People who already have an existing website can use Bitcartcc with the Woocommerce plugin. “We have a powerful web admin panel to manage your stores (yes, you can manage multiple stores with one instance), products, and invoices,” the Bitcartcc developer stressed sharing a demo of the admin panel and a store demo. “If you’re a starting merchant with no coding experience, we’ve got you covered,” Bitcartcc continued. “Full-featured ready store, automatically fetching products you have inserted in the admin panel. You can bootstrap your own online or physical store in seconds.” Bitcartcc’s creator remarked that there are “unlimited possibilities” and the team built Bitcartcc on top of Electrum and Electron Cash with a number of forks.
On Reddit and social media, Bitcartcc was welcomed by the Bitcoin Cash community. “Nice project and very active programmer, wish you success,” one person wrote in response to the Bitcartcc project on r/btc. “Btcpay is all politics that align with Blockstream — They even support Adam Back’s shilled bitcoin gold over bitcoin cash and of course Blockstream’s very own Liquid which has literally near [zero] usage,” another person replied. The Bitcartcc programmer who goes by the name ‘Mr. Naif2019’ on Reddit said he has an entirely different vision than Btcpay. Bitcartcc’s developer stated:
In my project I am going to focus on community — Community thoughts are important, and because of community asking I have added Bitcoin Cash support. I want this project to be a solution for everything, polished with time and community ideas.
What do you think about the Bitcartcc self-hosted payment processor? Let us know what you think about this subject in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.
Did Stock Markets Lose Value Worth 694,573,873 Bitcoins this Week?
After the shock of the coronavirus, stock markets turned down, erasing $6 trillion of value within a week. Here is how this value compares with Bitcoin.
Stock Markets Still Make Bitcoin Valuations Look Insignificant
The stock markets, a centuries-old and highly developed system handle trillions in value. A flash crash last week erased around $6 trillion in just a few days, after a panic sell-off based on fears of economic slowdown and a recession. The rapid index decline is massive in comparison to the scale of BTC trading.
A rough calculation estimated that the stock market erased value worth 694,573,873 Bitcoins.
Of course, the total supply of Bitcoin will be only 21 million coins, which means the stock markets erased 33 times the hypothetical total supply of BTC. Stock markets reflect immense economic activity, and this is taken as a sign that in cases of wider Bitcoin adoption, the leading crypto coin may represent more significant value.
Currently, Bitcoin trading is relatively small in comparison to stock markets, even at $43 billion per day. Real liquidity may be even lower. But if BTC starts trading on par with more traditional assets, there are even higher limits to its potential valuation.
BTC May Have Unlimited Size Based on Traditional Asset Valuations
The New York Stock Exchange boasts of companies valued close to $30 trillion in total. To map that kind of value, BTC would have to cost more than $1.5 million per coin, a still outlandish valuation that is envisioned in a scenario of “hyperbitcoinization.”
The market cap of BTC is now that of a mid-range company, not even close to tech giants which are valued at around $1 trillion or above. The potential upside of Bitcoin is thus quite significant if the asset starts to appeal as a mainstream investment. The large discrepancy in money valuation shows the long-term potential and the possibility that BTC is just starting to become accepted.
The Bitcoin correlation to the stock market is rather paradoxical. BTC absorbs inflows from enthusiastic traders who do not yet see fears of a recession. For that reason, Bitcoin largely follows the general direction of stock markets.
But on some occasions, BTC spikes during crisis news, acting as an offset to falling stock indexes. Bitcoin is also highly volatile, showing the possibility of rapid appreciation.
What do you think about the latest stock market moves in relation to Bitcoin? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @blockfolio, @KevinSvenson_
Changpeng Zhao, CEO of leading cryptocurrency exchange Binance, claims to have not cashed in on any of his cryptocurrency holdings since launching the platform. Zhao made his comments in a post to Chinese social media platform Weibo.
He said (roughly translated):
Looking at the wallet… I haven’t cashed in since Binance. Binance is still a baby and continues to grow.
Zhao was replying to the most recent iteration of the Hurun Rich List, which catalogs the world’s wealthiest citizens. According to the report, Zhao has overtaken Bitmain co-founder Micree Ketuan Zhan to become the world’s wealthiest person involved in blockchain and cryptocurrency, with an estimated net worth of $2.6 billion.
Zhao posted a tweet poking fun at the report, while reiterating his commitment to continuing to grow Binance.
In addition to Zhao and Ketuan, OKCoin founder Xu Mingxing, Ripple’s Chris Larsen, Huobi founder Leon Li, and Coinbase CEO Brian Armstrong rounded out the top six wealthiest crypto moguls with net worth’s over $1 billion.