Watch out for the most powerful trading pattern of all crypto times.
Bitcoin fared as expected yesterday and appreciated upwards towards the first resistance we reported at £5.3k ($7.5k). However, this was a weak move due to a bearish divergence and a bearish candlestick pattern formation. Therefore, the uptrend was rejected and the sideways action has now resumed.
The top 100 cryptoassets by market cap appreciated by 2.5% on average over the past 24 hours compared to bitcoin's 0.9% increase. Most importantly, several major cryptoassets made modest breakouts - with Ripple's XRP and litecoin increasing more than 5% - some say that currently "every alt looks intriguing".
Can we trust that the next 'alts season' is coming or was it just an 'alts day'? To understand that we need some context. Watch this small video with bitcoin's historical price action over the past few years. It can continue to appreciate more, however, it will likely need to drop lower. This means that the 'alts season' may not commence until the summer.
A new research paper claims even after the current +65% correction, bitcoin is still overvalued and support lies "at least four times below the current level". This prompts us to share an old - but gold - bitcoin trading pattern: 'the three cats and a moon'. Long story short - it's likely we will continue to face consolidation ahead.
What will Ethereum's community decide in face of the latest ASIC miners?
You have most likely met people who are currently mining more ether rather than bitcoin - eventually even in their dorm rooms. (See LBX's 'College of Crypto' mining tutorial). That proportion might change, as Bitmain, a mining hardware manufacturer, has announced the launch of the firstASIC miners for ether, which up to now was mined using graphic cards.
ASIC mining chips stand for 'Application-Specific Integrated Circuits' and are made to specifically tackle the hashing algorithms of a given blockchain. Some years ago you could still profitably mine Bitcoin with your laptop. Nonetheless, these specific chips can now calculate those hashes 100,000 times faster than a CPU. Thus, rendering such operations obsolete.
Some protocols didn't side along with the increased centralisation that was paired with the increased difficulty to mine the original cryptocurrency, and made their algorithms more memory intensive to counter ASIC's chip architecture. Monero was the latest top cryptocurrency to announce an upgrade of its algorithm that ensures ASIC-resistance. Now the question is 'what will Ethereum's community decide to do?' As it's not clear whether these new ASICs chips can provide a mining advantage in the case of Ethereum. Read about all the possibilities here.
Filter the noise and stay ahead of the pack
Yesterday we featured Deconomy, a conference in Seoul set to finish today. Vitalik Buterin decided to live tweet some panels yesterday. Some say they were considered one of the best tweet threads of 2018. Read all about the history of money, Bitcoin's scalability, why Roger Ver is right about some of his arguments regarding Bitcoin Cash, and why Craig Wright - once thought to be Satoshi - shouldn't be invited to speak.
'Beyond Blocks', a conference in Tokyo, which is focused on blockchain developments and cryptoasset markets in Asia commences today. It features several leaders of popular ICOs, VCs as well as the co-founder of Brave New Coin. Follow it here.
Tomorrow is the first day of CoinFestUK 2018, a three-day cryptoasset convention in Manchester. CoinFest is a non-profit 'open source event' that is organised in multiple locations and just requires a 'fiat-free organization'. Follow the British activities here.
An insight a day could give you more profits to play
You have likely heard about the 'Lightning Network', a scaling solution that is used on top of a given blockchain, with popular implementations on Litecoin and Bitcoin. Though, it may be a hard concept to grasp. Here's a neat guide to help comprehend it using an abacus.
You have likely received bitcoin cash if you were holding bitcoin on the 1st of August, 2017. Did you know that in some jurisdictions, namely in the US, you might be liable to pay income tax for it, even if you never sold it? Here's the full picture.
You have likely recently read 'copypasta' remarks, which state that Bitcoin is the pin that's going to burst traditional markets' bubbles - not the other way around. However difficult that may be, it may be easier to laugh at this neglected April fools joke - a US Dollar audit.