As Bitcoin Continues Its Climb, Top Altcoins Also Tease Breakout

Bitcoin violated the resistance zone of $6,055–$6,100 with a UTC close at $6,156 on Thursday and reached a six-month high of $6,336 on Bitstamp at …

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  • Bitcoin’s price hit fresh six-month high earlier today, further strengthening the case for a rally to $6,500 (100-week moving average).
  • BTC may witness a pullback to levels near $6,100 before rising toward that level, though, according to the hourly chart.
  • A bull flag breakout on the total market capitalization chart for all other cryptos, if confirmed, could be considered a sign the much-anticipated altcoin rally has begun.
  • Among those, litecoin could shine bright as both fundamentals and technicals have aligned in favor of the bulls.

Bitcoin’s (BTC) ascent continues with prices hitting new multi-month highs earlier today, and other top cryptocurrencies may soon join the party.

Bitcoin violated the resistance zone of $6,055–$6,100 with a UTC close at $6,156 on Thursday and reached a six-month high of $6,336 on Bitstamp at 07:40 UTC today.

Prices have now hit multi-month highs on three consecutive days – a sign of strong bullish sentiment. With every move higher, both the short- and long-term bull cases presented by several technical indicators over the last few weeks have gained strength.

BTC, therefore, appears on track to test the 100-week price average, currently at $6,506 – a level that last came into play last November.

As of writing, the cryptocurrency is changing hands at $6,260 on Bitstamp, representing a 3.45 percent gain on a 24-hour basis.

Daily and weekly charts

BTC continues to establish bullish higher highs and higher lows on the daily chart (above left) with key moving averages trending north.

The relative strength index (RSI) is reporting overbought conditions with above-70 reading. That signal, however, would gain credence if and when the momentum starts weakening. As of writing, the bulls are showing no signs of exhaustion.

Further, the weekly RSI (above right) is currently printing the strongest bullish signal in over 15 months.

Hourly chart

On the hourly chart, the RSI has breached the ascending trendline to the downside and is rolling over from overbought levels. Hence, we may see a minor pullback to the ascending trendline support, currently at $6,140, before rising toward $6,500.

Altcoins tease breakout

While bitcoin has doubled in value over the last six weeks, altcoins have underperformed big time, as indicated by the massive depreciation of their BTC-denominated exchange rates.

  • The top 10 altcoins by market capitalization (excluding stablecoin tether/USDT) are reporting double-digit losses on a 30-day basis.
  • Stellar (XLM), down 40 percent, is the biggest loser, followed by cardano (ADA) and tron (TRX).
  • With a 14 percent drop, Binance coin (BNB) is the best performing major altcoin.

The numbers indicate a lack of interest in altcoins despite BTC’s confirmation of the long-term bullish reversal on April 2.

The battered altcoins, however, could soon find some love, as their combined market capitalization seems to have charted a bullish technical pattern.

Total altcoin market capitalization

The bull flag seen in the above chart is a continuation pattern that often ends up accelerating the preceding rally.

A convincing break above the upper edge of the flag, currently at $73.65 billion, would confirm a flag breakout and signal a continuation of the rise from lows near $45 billion seen in February.

A flag breakout, if confirmed, could be considered a sign the much-anticipated altcoin rally has begun. As of writing, the total altcoin market cap is seen at $72 billion.

Among the major altcoins, litecoin (LTC) could shine bright, as its mining reward halving is due in less than 90 days.

The process aimed at curbing inflation by reducing mining rewards by half every four years tends to put a strong bid under the cryptocurrency for months in advance, according to historical data.

Litecoin daily chart

Litecoin’s channel breakout indicates the path of least resistance is to the higher side. Prices, therefore, could rise above $100 ahead of the reward halving event.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin and litecoin image via Shutterstock; charts by Trading View

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Signs Of Trust? BitFinex Bitcoin Price Premium Shrinks to 1.5% As BTC Surges to $6300

However, throughout the last month, this difference became more and more visible when looking at Bitcoin price on Bitfinex and on other exchanges.

Historically, there has always been a slight difference in the trading price of Bitcoin on various exchanges. However, throughout the last month, this difference became more and more visible when looking at Bitcoin price on Bitfinex and on other exchanges. Following the latest Bitcoin leg up, nevertheless, this difference is now shrinking away.

Bitfinex Bitcoin Premium Down to About 1.5 Percent

As Cryptopotato reported earlier today, Bitcoin skyrocketed in price, reaching $6,300 throughout the day and is up over $1,000 in the last 7 days alone.

Following the latest surge, we can also see that the premium for buying Bitcoin on popular cryptocurrency exchange Bitfinex is shrinking and is already only around 1.5 percent.

BitFinex Vs. Bitstamp

For comparison, the premium was even high as 6% just two weeks ago after the cryptocurrency exchange was served with a court order from the New York Attorney General, alleging a cover-up of $850 million loss.

As seen on the chart above, after April 26th, there was a serious discrepancy between the price of Bitcoin on Bitfinex and on other major exchanges.

Perhaps one of the best explanations to this was the fact that people were buying Bitcoin as a means of getting out of the exchange following the turmoil after the NYAG court order. In other words, it’s easier for people to buy and withdraw Bitcoin compared to other currencies, hence driving its price higher.

Why Is The Premium Shrinking?

There can’t be a one-off answer to that question and there certainly are numerous reasons for it. First off, it’s only logical that the newfound price volatility which caused Bitcoin to surge over the past few days will eventually even up its cost throughout different exchanges because the increasing demand across the board is weighing in.

BitFinex Reports On Over $400M Gross Profits

On another note, it could also be the fact that people might feel more confident in Bitfinex and don’t urge to leave the exchange. Just yesterday, May 9th, Bloomberg reported that Bitfinex has managed to net a profit of $404 million on their $418.2 million gross profit, which suggests a 97 percent net profit margin, which is somewhat impressive, if true.

In any case, it’s worth noting that Bitcoin is performing splendidly throughout the entire year, almost doubling up in price. This has caused many, including prominent investor Mike Novogratz, to believe that we are already seeing 2019’s bull run.

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Luxembourg Bitstamp appoints head of US operations

Luxembourg-based cryptocurrency exchange Bitstamp – the largest in Europe – has appointed a head of US operations after it was recently granted …
Hunter Merghart will lead the opening of Bitstamp’s New York office

Photo: Shutterstock

Luxembourg-based cryptocurrency exchange Bitstamp – the largest in Europe – has appointed a head of US operations after it was recently granted an American licence.

Hunter Merghart, who previously worked at Coinbase, will lead the opening of Bitstamp’s New York office and will work to expand the company across the US.

In 2016 Bitstamp became the first fully-licenced bitcoin exchange in Europe, after the Luxembourg government granted the company a licence as a fully regulated payment institution.

Last year it signed an acquisition deal with NXMH, the European investment arm of South Korean gaming giant NXC.


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Bitcoin Is Somehow Still Climbing

Bitcoin, up a staggering 20% over the last 30 days, has continued its march higher this week despite a raft of problems for the world’s biggest …

Bitcoin, up a staggering 20% over the last 30 days, has continued its march higher this week despite a raft of problems for the world’s biggest cryptocurrency.

The bitcoin price hit $6,388 on the Luxembourg-based Bitstamp exchange last night after starting the year at under $4,000. The bitcoin price has also extended its lead over the wider cryptocurrency market, adding to its so-called market dominance—how much bitcoin contributes to the total value of all cryptocurrencies—which is now nudging 60%, its highest in six months.

Bitcoin has somehow added almost 7% over the last three-day trading period despite some $40 million of bitcoin (some 7,000 of the digital tokens) being stolen from the Malta-based Binance exchange, the world’s largest bitcoin and cryptocurrency exchange by volume, and Binance’s chief executive Changpeng Zhao sparking a controversial debate about “re-organizing” the bitcoin blockchain to recover the funds.

Bitcoin investors have continued to pile into the digital currency this week.

Getty

On Wednesday Changpeng Zhao, who is often known simply as CZ, revealed hackers had stolen funds from its customers and froze deposits and withdrawals from Binance accounts while it got a handle on the situation.

“The hackers used a variety of techniques, including phishing, viruses and other attacks,” CZ wrote in the statement, saying Binance is investigating the breach.

With only bitcoin and no other cryptocurrency stolen, it would be typical for the bitcoin price to move sharply downwards following the news, as it has done in the aftermath of previous large scale security breaches at major exchanges.

Bitcoin continued its march higher, however, undaunted even by the storm created when CZ suggested he had spoken to major bitcoin miners and developers about trying to reverse the illicit transactions—something that would fundamentally change the nature of bitcoin.

Ultimately, Binance decided attempting to reorganize bitcoin’s blockchain was both unwise and effectively impossible.

CZ, the CEO of Binance, revealed he had spoken to other bitcoin and cryptocurrency leaders to discuss undoing the theft.

Twitter / cz_binance

Many bitcoin and cryptocurrency experts pilloried CZ and Binance for even considering the move.

“A reorg to recover exchange losses is like a bail-out for a bank mismanaging risk,” the widely respected bitcoin and crypto advocate Andreas Antonopoulos said via Twitter. “Fortunately, it’s so hard to pull off and so likely to fail that unlike banks, there won’t be a bailout here. Those who fail security get to eat the cost.”

There has been some positive news for bitcoin over the last week, however, predominately coming from social media giant Facebook.

Facebook has now decided to remove its restrictions on bitcoin, cryptocurrency and blockchain ads after allowing only some pre-approved ads to run previously.

“While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency,” Facebook wrote in a blog post this week.

Meanwhile, Facebook’s planned bitcoin rival continues to draw attention, with a Blockchain Capital executive saying the recent revelations about Facebook working on a private cryptocurrency have “lit a fire in the pants of every major [financial technology] and financial institution in the U.S.”

Bitcoin has had a bad week, but the price has failed to reflect that.

CoinDesk

Elsewhere, the industry is gearing up for one of the biggest events in the cryptocurrency calendar this week—Blockchain Week NYC and CoinDesk’s Consensus 2019 event, beginning Monday, May 13, and running all week at the New York Hilton Midtown.

This year headline speakers include FedEx’s Fred Smith, Fidelity’s Abigail Johnson, Twitter and Square’s Jack Dorsey, chairman of the U.S. Securities Exchange Commission, Jay Clayton, and U.S. presidential hopeful, Andrew Yang.

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Bitcoin Cash Achieves Market Cap of $5.00 Billion (BCH)

Bitcoin Cash (CURRENCY:BCH) traded 2.7% lower against the US dollar during the 24-hour period ending at 21:00 PM E.T. on May 9th. Bitcoin Cash …

Bitcoin Cash logoBitcoin Cash (CURRENCY:BCH) traded 2.7% lower against the US dollar during the 24-hour period ending at 21:00 PM E.T. on May 9th. Bitcoin Cash has a market cap of $5.00 billion and approximately $1.46 billion worth of Bitcoin Cash was traded on exchanges in the last 24 hours. One Bitcoin Cash coin can now be purchased for about $281.15 or 0.04565162 BTC on major cryptocurrency exchanges including TOPBTC, Bittylicious, Mercado Bitcoin and Binance. During the last seven days, Bitcoin Cash has traded up 3.5% against the US dollar.

Here’s how similar cryptocurrencies have performed during the last 24 hours:

  • Bitcoin (BTC) traded up 2.2% against the dollar and now trades at $6,167.35 or 1.00000000 BTC.
  • Steem (STEEM) traded 4.8% lower against the dollar and now trades at $0.30 or 0.00004824 BTC.
  • Unobtanium (UNO) traded 11% higher against the dollar and now trades at $136.33 or 0.02213668 BTC.
  • Namecoin (NMC) traded 20.5% lower against the dollar and now trades at $0.79 or 0.00012916 BTC.
  • Counterparty (XCP) traded down 14.5% against the dollar and now trades at $1.99 or 0.00032296 BTC.
  • Crown (CRW) traded 3.6% lower against the dollar and now trades at $0.12 or 0.00001925 BTC.
  • Terracoin (TRC) traded 66% higher against the dollar and now trades at $0.0309 or 0.00000502 BTC.
  • ATBCoin (ATB) traded up 2.7% against the dollar and now trades at $0.0120 or 0.00000195 BTC.
  • CHIPS (CHIPS) traded flat against the dollar and now trades at $0.0205 or 0.00000392 BTC.
  • Zetacoin (ZET) traded down 3.2% against the dollar and now trades at $0.0020 or 0.00000033 BTC.

Bitcoin Cash Profile

Bitcoin Cash is a proof-of-work (PoW) coin that uses the SHA-256 hashing algorithm. It was first traded on August 1st, 2017. Bitcoin Cash’s total supply is 17,773,525 coins. The Reddit community for Bitcoin Cash is /r/Bitcoincash and the currency’s Github account can be viewed here. Bitcoin Cash’s official message board is bitcointalk.org. Bitcoin Cash’s official website is www.bitcoincash.org. Bitcoin Cash’s official Twitter account is @bitcolncash and its Facebook page is accessible here.

Bitcoin Cash Coin Trading

Bitcoin Cash can be purchased on these cryptocurrency exchanges: CoinExchange, Cryptopia, Bibox, Crex24, Koinex, Mercado Bitcoin, Bitso, Bithumb, CoinBene, Bleutrade, Braziliex, C2CX, Stocks.Exchange, Koineks, Bitinka, Poloniex, Tidex, B2BX, Gate.io, Coinroom, CoinEgg, ZB.COM, Liquid, Coinbase Pro, Coinrail, Huobi, ABCC, Bitbank, Allcoin, CoinFalcon, xBTCe, UEX, Bitbns, CryptoBridge, BiteBTC, Iquant, WEX, Independent Reserve, DSX, Bitfinex, Coinbe, DragonEX, QuadrigaCX, Binance, Bittrex, BitForex, COSS, CEX.IO, Vebitcoin, Korbit, Altcoin Trader, ChaoEX, ACX, Zebpay, Coinsquare, bitFlyer, Trade By Trade, WazirX, Zaif, Exmo, Trade Satoshi, BX Thailand, BTC Trade UA, FCoin, BTCC, Coinnest, Koinim, Bitstamp, Coinhub, GOPAX, BitBay, RightBTC, IDCM, Fatbtc, HitBTC, CPDAX, Negocie Coins, Stellar Decentralized Exchange, Indodax, MBAex, Bit2C, Coinfloor, Waves Decentralized Exchange, Cobinhood, Ovis, BitMarket, Kraken, EXX, YoBit, Sistemkoin, Bittylicious, OKCoin International, Bit-Z, Cryptomate, Gatecoin, Liqui, Mercatox, Kuna, Coinsuper, Bitsane, QBTC, CoinTiger, BtcTrade.im, BTC Markets, Kucoin, Buda, Livecoin, TOPBTC, SouthXchange, Instant Bitex, Cryptohub, BigONE, Coindeal, CoinEx, Exrates, Upbit, Bisq, Graviex, OKEx, OTCBTC, cfinex, HBUS and Coinone. Investors seeking to acquire Bitcoin Cash using U.S. dollars directly can do so using Changelly, Gemini or GDAX.

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