Is this really a trend reversal - or just a short squeeze?
Despite the downtrend, bitcoin is attempting a small bullish breakout today, after rising over the £5.1k ($7.2k) resistance for the first time since last Thursday. The top 100 cryptoassets are up 9% over the past 24h, following bitcoin's 6% rise. Here's something interesting - rumours of informal reports stated that OTC trading was growing in volume as multi-billion dollar bids commenced, likely powered by Skype calls. Although, such demand might not directly translate to moves in regular exchanges.
Twitter analysts are claiming the first target for this upside is £5.3k ($7.5k) but the next strong resistance is at £5.6k ($7.9k). Here, more traders are looking to defend their shorts, which are negative bets against the price of a bitcoin. Shorts are near their all-time highs and increasing - a situation that tempts many players to attempt pushing the price higher to liquidate such positions.
Why did this breakout happen? Aside the OTC news and the short squeeze, there's no apparent reason. We previously stated that "markets are complex and can move due to a cascade of unrelated events". In absence of fundamental news and without a double bottom at £4.3k ($6k) - a typical reversal pattern - some are saying the trend changed as the stochastic RSI - an indicator used to analyse the strength of price movements - was in the same oversold level as it was in early February. Keep following the sharks, or rather the charts.
Education is the most profitable asset you can develop - don't dismiss it.
The two co-founders of a popular ICO called 'Centra', which was backed by Floyd Mayweather, were charged with fraud and got arrested by the US SEC as they were trying to leave the US. All this occurred following a class action suit since December and a subpoena in February.
Nevertheless, Binance, a popular alts exchange, didn't undergo proper due diligence on the token, which left many on Twitter claiming they had a lot to answer for. It's still trading at a £6.4 million market cap, as traders keep buying the bottomless dip whilst trying to dismiss these news as FUD.
At LBX, we focus on providing great resources for all knowledge levels, to ensure our community is critical and does their own research. Check out our newly updated College of Crypto and our latest Telegram channel. At a time that the entire space risks getting tainted with events as such, it's important to consider all angles - especially when a poll found 36% of British people believe cryptocurrency is related to funeral financing!
Filter the noise and stay ahead of the pack
A distributed economy conference - Deconomy - is happening in Seoul today and tomorrow. It's bringing together the popular cryptographer David Chaum - DigiCash's founder, Vitalik Buterin - Ethereum's founder, Roger Ver - the main proponent behind Bitcoin Cash, and Jung-A Lee - VP of Bithumb, a Korean exchange. Follow it here.
A future of the blockchain conference - CryptoBlockCon - is taking place in LA this Wednesday and Thursday. It seems that San Francisco's 'Block2TheFuture', a similar conference on the same dates, may constitute of better speakers.
Vitalik's dubious April Fool's joke was aimed at astonishing people. He eventually announced that the 120 million hard-cap for ether's supply was to see if "people would contemplate on whether or not the proposal was real".
An insight a day could give you more profits to play
Jimmy Song is a popular Bitcoin developer published a 'defence to why the original cryptoasset is different' due to its larger network effects. We also recommend this article on Bitcoin's patterns of disruptive technology.
Major tech firms are under cross-fire these days due to social problems connected to their offerings. NYT's Nathaniel Popper argues these companies are looking to fix those with blockchain-based solutions. Is blockchain ready? If it's ready, will it work?
Laura Shin hosts two major crypto podcasts. 'Unchained's' latest episode has the founder of ZCash talking about privacy coins and their good uses cases. It's available on Spotify. In 'Unconfirmed', she interviewed David Ari Paul on the current slump.