Market report


London Block Exchange

4th April 2018

Watch out for the most powerful trading pattern of all crypto times.


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.


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