Bitcoin finds space in Africa and keeps growing

Africa Bitcoin

Bitcoin is a digital currency that has been operating on the internet since 2009. With vulnerable economies, the asset finds a prominent place in Africa, a continent devastated by weak currencies.

Since the fiat currencies of several countries on the African continent are extremely devalued, the population is looking for alternatives. One of them is certainly the dollar, however, there is a shortage of currency in the countries of the region.

According to a survey of local analysts, small businesses have been the main sources of Bitcoin trading. This is because, when dealing with foreigners, the use of cryptocurrencies facilitates transactions and avoids exchange rates.

With great potential for use in Africa, Bitcoin finds space in small businesses and volume continues to rise

Bitcoin was created by Satoshi Nakamoto with an interest in facilitating global transactions. Working over the internet, Bitcoin would be considered the people's digital currency, according to its creator.

With a different operation from fiat currencies, which depend on the Central Bank, Bitcoin is the first decentralized in the world. And its potential is already being explored in a continent that has lacked financial innovations in recent years.

According to Reuters, African countries like Nigeria, for example, have seen a large adoption of Bitcoin. This is because, the local currency has undergone immense devaluation, which hinders business.

Another country neighboring Nigeria already sees the local currency register a loss of two thirds of the value. That is, with weak currencies, which do not meet the requirement of value reserve, coupled with a scarcity of dollars, Bitcoin has been the salvation of many Africans.

The biggest problem that analysts in the region still detect is that the lack of regulation attracts scammers. Despite this problem, Bitcoin continues to grow in volume across Africa.

Bitcoin and Africa enthusiast, Twitter CEO reiterates that currency is the only internet native

In late 2019, Twitter CEO Jack Dorsey spent a few months traveling across the African continent. Over there, Jack met many Bitcoin enthusiasts and was able to better understand the pains of the continent.

Upon leaving the continent, Jack Dorsey made it clear that Bitcoin has a big use case in Africa. That's because, with the population still suffering from wars, hunger, among others, the use of money is one of the problems that can be easily solved with Bitcoin.

In the last week, Jack talked to Reuters again, making his opinion on Bitcoin clear. For him, Bitcoin is the only native currency on the internet and that should not change in the coming years.

For him the use of Bitcoin is easy and the fees, in relation to its efficiency, are cheap. That is, the CEO of Twitter, one of the most used social networks in the world today, advocates that Bitcoin be the internet's default currency.

Amazon recently released a documentary called Bitcoin on Africa, which shows the currency's application on the continent. The case is just more to highlight the immense potential of Bitcoin as a currency and its importance in ensuring financial freedom around the world.

This week the $12,000 Bitcoin barrier could be breached

bitcoin-sky-limit

Bitcoin's price continues to encounter resistance at the $12,000 level. Will the bulls overtake him before the weekly close?

Typically, for Bitcoin (BTC), weekends are marked by reduced trading volume, as day traders take a break and CME's Bitcoin markets are closed.

Experienced traders also know that the exchanges' order portfolios shrink over the weekend, providing opportune times for Bitcoin's smart 'whales' to exploit these gaps and influence the price through volatility.

This Saturday, August 15, things are different, as the scenarios mentioned above are not preventing traders from making a new push for the $12,000 mark.

If the current move to the key level fails, it will be the second time in a week, and for some analysts, multiple rejections at a key resistance level could be a bearish signal.

On the other hand, there is also an equal number of traders who will argue that several new tests of a key resistance level increase the chance that it will be violated in future attempts.

BTC/USDT daily chart. Source: TradingView

Some positives for the Bitcoin price are: the daily chart continues to show a pattern of higher lows, the RSI is in the bullish territory (66) and traders show a strong interest in buying in each fall, as shown by the increase in the volume of purchases on a daily basis.

In the event that traders manage to close a candle 4 hours above $12,000, Bitcoin will need to seek a daily high above $12,068 and $12,123, so things will be quite interesting.

For now, we can see that the price is simply compressed in a narrower range within the streamer and the drop in the lower trend line is expected to be supported by the high-volume VPVR node stretching from $11,730 to $11,500.

Normally, a drop in such a streamer would justify some concern, but given the buying interest shown since July 28 and still on March 12, it appears that the bulls will eventually be able to reach $12,000 in the short term.

Bitcoin daily price chart. Source: Coin360

While Bitcoin struggled to resume the $12,000 level, altcoin performance has been somewhat confusing.

Chainlink (LINK) continues to lead the market, rising 12% to reach a new record high of $19.80. Ether (ETH) appears to be losing momentum as it fell 2.2% and is struggling to recover the $340 level.

Meanwhile, EOS has finally managed to break above a key resistance to rise more than 18% and is currently trading at $3.75

According to CoinMarketCap, the overall capitalization of the cryptocurrency market is now at $373.4 billion and the Bitcoin dominance index is currently at 58.8%.

Bitcoin may rise faster than Tesla shares, analyst says

bitcoin-can-rise-more-fast-than-tesla-stocks

Unlike Bitcoin, Tesla's (TSLA) stock has been up in recent weeks. The chart below shows the value of the famous auto company's shares since August 2019.

top 10 criptomoedas
Tesla's price action chart last year in the TradingView.com

As mentioned, Bitcoin's earnings, by comparison, were negligible.

While Tesla shares have risen about 800% since June 2019, BTC has fallen 25%. Since the beginning of 2020, the company's shares have risen more than 200%, while Bitcoin has risen only 20%.

According to one of the leading cryptocurrency traders, BTC could soon rise as fast as Tesla. The question: it will be necessary to exceed the $10,500 first.

Exceeding $10,500 will be the main indicator

According to cryptocurrency analyst Cantering Clark, Bitcoin could see an extremely strong recovery after the asset decisively surpasses $10,500.

Bitcoin could reach $50,000 with only 1% of the capital of institutions

bitcoins

A low allocation of institutional investments can catapult the price of Bitcoin. That's what Ryan Watkins, from Messari, a research firm specializing in cryptography, said.

Watkins analyzed the numbers and made his prediction. If institutions allocate just 1% of their portfolios to Bitcoin, their market value could rise to more than $1 trillion. Currently, Bitcoin's market value is $172 billion.

Watkins' research sought to calculate the impact of institutional investors on the price of BTC. To this end, Watkins followed the famous example of hedge fund manager Paul Tudor Jones, of investing a “low single-digit percentage” in Bitcoin.

99% retail - and that 1% institutional

Watkins took into account the entry of several large investors into the market. He considered foundations, family offices, sovereign wealth funds, pension funds, and mutual funds. At first, their entry would result in about $480 billion more in the Bitcoin market.

In his research, Watkins cites researcher Chris Burniske, who found that fiat currency flows for crypto led to price gains between two and 25 times during the 2017 upward trend.

"An aggregate institutional allocation of 1% to BTC can easily raise Bitcoin's market value above $1 trillion or more than $50,000 per Bitcoin," said Watkins.

Pension funds could boost Bitcoin in the future

On the one hand, Watkins believes that "Bitcoin may not need institutions to succeed". On the other hand, he says that "if the BTC becomes a non-sovereign value reserve adopted globally, it will be necessary to convince institutional investors to transfer wealth to the asset".

Watkins predicted that hedge funds will lead these investors to Bitcoin. But Ryan Radloff, CEO of the multimillion-dollar custody Kingdom Trust, takes a different view. Radloff believes that the retirement sector in the United States will be the first to embrace BTC. The reason: consumers demand the ability to allocate digital assets to their retirement portfolios.

Currently, the retirement sector has $28 trillion in assets. Kingdom Trust itself created the world's first Bitcoin retirement fund, in partnership with the startup Bitwage.

Other analysts believe that new products and regulations may bring investors to this market. This is the case with securitized tokens, which can represent real-world assets. Another possibility is the creation of ETFs, such as the long-awaited Bitcoin ETF.

Bitcoin Could Get a Boost From Central Bank Digital Currencies

from coindesk.com

“There is no clear understanding where bitcoin will go,” Yuriy Mazur, head of data analytics at cryptocurrency exchange CEX.IO told CoinDesk’s Omkar Godbole. “It may either retrace back to $6,500 or reach $10,000.”

With the near-term picture cloudy, some analysts are focusing on a longer-term trend that could be surprisingly bullish for bitcoin: the emergence of digital currencies issued by central banks. 

It’s not an obvious investment thesis because bitcoin was invented to be used in an electronic peer-to-peer payment system that would be free of government control and operate outside of the traditional banking system. 

And most central bank digital currencies, or CBDCs, would, by their very nature, be issued and controlled by governments, and in many cases distributed through banks. 

But Jack Purdy and Ryan Watkins of the research firm Messari wrote last week in a report that the “coming digitization of money,” including the launch of CBDCs, could provide a “secular tailwind” for bitcoin. 

Bitcoin price is caught in a downdraft after a series of rallies in recent weeks that repeatedly fizzled out at the $10,000 mark. 

CBDCs have gained momentum over the past year as countries consider whether to roll out digital versions of their currencies to keep up with Facebook’s proposed Libra and China’s forthcoming digital currency electronic payment, which is already in testing.

The journal Central Banking, which is supported by the Bank of International Settlements and the European Central Bank among others, found in a survey earlier this month that some 46 countries are considering CBDCs using a constrained form of distributed ledger technology. 

Federal Reserve Chair Jerome Powell told Congress in February the U.S. central bank is in the early stages of researching digital currencies, and that having a “single government currency at the heart of the financial system is something that has served us well.” 

Even so, JPMorgan said last week in a report that “there is no country with more to lose from the disruptive potential of digital currency than the United States,” as reported by Bloomberg News. “This revolves primarily around U.S. dollar hegemony.” 

The largest U.S. bank’s warning merely reinforces the urgency and significance of the efforts, and that’s what the Messari analysts were homing in on. 

“Catalyzed by bitcoin and the recognition of the benefits of blockchain technology, many countries and companies around the world have begun researching, testing and launching their own digital currencies,” the analysts wrote. 

“When these projects launch, they will have the combined effect of exposing billions of people to cryptocurrency-related technologies,” according to the report. “This will increase people’s comfort with and understanding of cryptocurrencies, get more people creating and using cryptocurrency wallets, and provide on-ramps into decentralized cryptocurrencies like bitcoin.”

So CBDCs might be used to facilitate purchases of bitcoin? That’s the idea.

Bitcoins: Covid-19, cyber attacks, panic and… finally the recovery?

bitcoin-covid19

Two companies specializing in the sale of crypto have recorded technical blockages during the sudden devaluation of cryptocurrencies and the race for crypto. Will it be a technological problem or just the effect of over-leveraging crypto.

In cryptocurrencies, the past week is hardly out of the memory of investors: from 12 to 13 March, the value of bitcoins recorded losses of 40% - the highest ever recorded in the last seven years. But an evil never comes alone: “infected” by the effects of Covid-19, the investment products that are based on the expectations of appreciation of the various cryptocurrencies (Bitcoins and Ethereum, but there are many more) have collapsed. Despite the increase in the margins charged by the virtual exchange offices, which are known in the jargon as “exchanges”, there was a rush to raise these financial products. Result: according to CryptoCompare's monitoring, more than 30 billion dollars will have been withdrawn from the largest exchanges in the world in the fateful 24 hours between 12 and 13 March. And the bad news didn't stop there.

With such volatility of values and multiple investors eager to raise the money invested in financial products to minimize losses or to, as is typical, buy the same products again, but at lower prices to temporarily escape depreciation, the platforms of the “ exchanges ”have started to show that they may not be robust enough to support a global scale business.

Gemini, a virtual exchange office based in New York, is said to have been one of the first to show signs of technological blockade: according to Reuters, the American “exchange” was inoperative and without supporting transactions for more than 90 minutes. The same Reuters also reports that BitMex, which is based in the Seychelles islands, had no better luck: two 45-minute stops.

"It is important to see the evolution that the value of gold will have. If that value goes up, and that of crypto assets does not rise then we can conclude that crypto assets have no strength as refuge assets "

FRED ANTUNES, APBC CHAIRMAN

The Gemini representatives justified the stop with a precautionary measure that allowed them to solve technical problems before returning to the activity. BitMex's justifications are capable of generating more alarm: according to this “exchange”, the failures in operation were due to blocks generated by cyberattacks, which use denial of service (DDoS) methods, which made the transmission of purchase orders unfeasible or sale of assets associated with cryptocurrencies.

Coincidence or not, the alleged cyberattacks on Bitmex occurred at the time of the greatest influx of asset purchase and sale orders - which raised the question regarding the resilience of the infrastructures and platforms used by the exchanges, which operate all over the world. , eventually, without the technical requirements that are required of stock markets or conventional brokers. This, in the opinion of some analysts, makes it difficult to standardize prices and to direct transactions among the millions of investors scattered around the world.

Fred Antunes, president of the Portuguese Association of Blockchain and Cryptocurrencies (APBC), recalls that also in the traditional markets there have been major breaks and devaluations and relates the plummeting of bitcoins, as well as crypto and cryptocurrencies in general, with the impact generated by Covid-19 in the world economy. "People started to sell everything they had and in crypto too", says the cryptocurrency expert.

The devaluation in parallel with the fall registered in traditional markets may have revealed a new facet of cryptocurrencies and financial products that result from them: unlike what happened in other financial crises, this time, bitcoins and the like did not function as a “safe asset”, which makes it possible to keep capital on hold while the crisis affects the values ​​of traditional financial products.

A week after devaluing 40% and starting to be traded at just over $4000, Bitcoins have already recovered beyond $5000. Fred Antunes reiterates that crypto assets are recovering faster than financial products in traditional markets.

“It is important to see the evolution that the value of gold will have. If that value goes up, and that of crypto assets does not rise, then we can conclude that crypto assets have no strength as refuge assets”, says the president of APBC, noting that the average recovery of value in assets, in general, has not exceeded both by percent, while that of crypto assets is already around 12%, as it involves smaller volumes.

Fred Antunes relativizes the alleged technical limitations of the infrastructures that support cryptocurrencies - and links the abrupt devaluation of the last few weeks to the conjuncture that may have been aggravated not only by Covid-19, but also by the failure of Chinese investment programs in cryptocurrencies.

“The market“ crashed ”in its entirety. Each crypto can have a different infrastructure, but they all had the same behavior, which ended up infecting investors who were led to selling to buy later”, analyzes the cryptocurrency and blockchain expert.

Regarding the blockages registered in BitMex and Gemini exchanges, Fred Antunes admits that this is a situation in which the market tries to get rid of situations that are not always the healthiest, such as the leverage of 300% to 400% that they are carried out by the financial products created by some “exchanges”.

 “I'm glad BitMex stopped. Eventually, it might even be good for exchanges like BitMex to close”, he concludes.

Bitcoin Making Little Headway as Resistance Caps Price Gains

View

  • Bitcoin is struggling to cross the 50-day moving average hurdle for the fifth straight day. The repeated failure at that key hurdle has neutralized the bullish outlook put forward by Friday’s falling wedge breakout.
  • A convincing move above $3,630 (50-day MA) would revive the short-term bullish outlook and open the doors to $3,730 – the neckline of a potential inverse head-and-shoulders bullish reversal pattern on the 4-hour chart. A violation there would confirm a bearish-to-bullish trend change and could yield a rally to $4,130 (target as per the measured move method).
  • The bears could make a comeback if the 50-day MA hurdle remains intact for another 24 hours, pushing prices below $3,400.
Bitcoin’s struggle to cross a key moving average lined up above $3,600 is a cause of concern for the bulls. The leading cryptocurrency by market capitalization is currently trading at $3,575 on Bitstamp, having faced rejection at the widely followed 50-day moving average (MA) hurdle at $3,629 earlier today. Notably, that average line has been capping upside since Friday, countering expectations of a quick move toward $4,000 built following the high-volume falling wedge breakout. The sideways action below the 50-day MA has also invalidated the bull flag pattern created on the 4-hour chart over the last three days. So, the bullish case appears to have weakened and the probability of a drop to levels below $3,400 would rise if the 50-day MA hurdle remains intact for another 24 hours.

Daily chart

As seen above, the odds are stacked in favor of the bulls: the 5- and 10-day MAs are trending north, validating the falling wedge breakout. The 14-day RSI is reporting bullish conditions above 50.00. Even so, BTC is struggling to find acceptance above the 50-day MA, currently at $3,629. As a result, the bears may feel tempted to hit the market with fresh offers, driving the prices down to the ascending 10-day MA at $3,521. It is worth noting that the 50-day MA had worked as stiff resistance multiple times in the second half of the last month. As a result, a convincing move above that average is needed to revive the short-term bullish outlook.

4-hour chart

BTC is likely creating the right shoulder of an inverse head-and-shoulders pattern on the 4-hour chart. A break above the neckline resistance, currently at $3,730, would confirm a bullish breakout and could be followed by a move higher to $4,130 (target as per the measured move method). So, while a break above the 50-day MA would revive the bullish outlook, only an acceptance above the neckline hurdle of $3,730 would put $4,000 back on the table. Disclosure: The author holds no cryptocurrency assets at the time of writing. Source: www.coindesk.com

Little Relief in Sight as Bitcoin Price Closes at 7.5-Week Low

View

  • Bitcoin suffered its lowest UTC close in over seven weeks on Wednesday, reinforcing the bearish view put forward by the rejection at the 50-candle moving average (MA) on the 6-hour chart yesterday. The close at multi-week lows also dashed hopes of a falling wedge breakout.
  • The cryptocurrency also created a bearish outside reversal candle on the daily chart yesterday, opening the doors for a drop to falling channel support at $3,230.
  • A strong move above the 50-candle moving average on the 6-hour chart, currently at $3,434 will likely weaken bearish pressures and yield a corrective bounce to the resistance near $3,650.
With bitcoin (BTC) closing yesterday at the lowest level in 7.5 weeks, the gradual sell-off is showing no signs of abating. On Wednesday, the leading cryptocurrency by market value ended the session (as per UTC) at $3,328 – the weakest daily close since Dec. 16 – according to Bitstamp data, dashing hopes of an upside break of the falling wedge pattern carved out over the last six weeks. Further, BTC created a bearish lower high at the crucial resistance of the 50-candle moving average (MA) on the 6-hour chart. That average line has thwarted several fledgling rallies over the last three weeks, as discussed yesterday. As a result, the slow drip sell-off from December highs above $4,200 witnessed over the last six weeks is likely to continue. BTC could soon challenge recent lows near $3,300 and may extend the decline toward the low of $3,100 seen in December. At press time, BTC is trading largely unchanged on the day at $3,380.

Daily chart

As seen above, yesterday’s high and low engulfed Tuesday’s price action as indicated by a bearish outside candle. Effectively, the day began with optimism but ended on a pessimistic note, meaning the “sell-on-rise” mentality is still strong. Hence, the cryptocurrency risks falling to the descending channel support, currently at $3,230. Supporting that bearish case are the 14-day relative strength index of 38 and downward sloping 20-day moving average (MA).

6-hour chart

On the 6-hour chart, the 50-candle MA has proved a tough nut to crack for close to three weeks. A convincing break above that average, currently at $3,434, might lead to a stronger rally toward resistance at $3,658 (high of the bearish gravestone doji created Jan. 26). Disclosure: The author holds no cryptocurrency assets at the time of writing. Source: www.coindesk.com

Down Again: Bitcoin Is Closing on Key Long-Term Price Support

View

  • Bitcoin is again closing on the 200-week moving average, which served as strong support in December. The weekly RSI is more bearish this time round, though, and is reporting undersold conditions.
  • A weekly close below that level could be followed by a slide back to September 2017 lows near $2,970.
  • A failure to push prices below the 200-week SMA support would weaken the bears. A bullish reversal, however, would be confirmed only above $3,658 – the high of gravestone doji carved out Saturday.
Bitcoin (BTC) is on the defensive after a drop to six-week lows and could soon test crucial long-term support below $3,300. The cryptocurrency fell to $3,322 – the lowest level since Dec. 17 earlier today – bolstering the bearish view put forward by Monday’s high-volume range breakdown. Trading volumes jumped to 18-day highs near $7 billion yesterday, according to CoinMarketCap data. The high-volume sell-off has likely opened the doors to re-test of December lows near $3,100. Moreover, the long-term support level put the brakes on a sell-off back in December, and was followed by a corrective bounce to levels above $4,000. A strong bounce from the 200-week SMA line would likely embolden the bulls, but the probability of a bull reversal from that SMA support looks low, according to technical indicators. As of writing, BTC is trading at $3,380 on Bitstamp, representing a 1.5 percent drop on a 24-hour basis.

Weekly chart

As seen above, BTC is again trading within striking distance of the 200-week SMA of $3,298. The support had held ground on a weekly closing basis (Sunday, UTC) in mid-December, possibly because the relative strength index (RSI) was reporting oversold conditions at the time. This time, however, the SMA support could be breached, as the RSI is currently in undersold territory.

Daily chart

The RSI on the daily chart is also biased toward the bears, as opposed to the record oversold conditions seen in November and December. The 5- and 10-day moving averages (MAs) are also trending south, indicating a bearish setup. Hence, a drop to the December low of $3,122 could be on the cards.

4-hour and hourly chart

The RSIs on the 4-hour and hourly charts are reporting oversold conditions below 30.00. Therefore, a convincing break below the 200-week SMA of $3,298 could be preceded by a minor bounce. Disclosure: The author holds no cryptocurrency at the time of writing. Source: www.coindesk.com

Bitcoin Price Looks South After Drop to Six-Week Lows

Bitcoin ended a two-week period of consolidation with a drop to six-week lows earlier today. The leading cryptocurrency by market value fell below $3,470 at 04:45 UTC, confirming a downside break of a triangle pattern. That range breakdown was followed by a quick slide to $3,357 – the lowest level since Dec. 17 – according to Bitstamp data. A prolonged period of consolidation usually yields a big move in the direction of the breakout. For instance, BTC ended a multi-week-long trading range with a move below $6,000 on Nov. 14 and what followed was a violent sell-off to levels below $4,000. However, the duration of the recent consolidation was shorter than the one seen before the big bearish move of Nov. 14. So, the magnitude of any post-breakdown move would likely be smaller too. Nevertheless, the latest range breakdown could at least yield re-test of December lows near $3,100, as the primary trend represented by the downward sloping 10-week moving average (MA) is negative. The bearish case looks even stronger if we take into account the bull failure seen over the weekend. Prices had turned in favor of the bulls with a move to $3,658 on Saturday. That triangle breakout, however, petered out, with prices falling back to $3,500 yesterday. A failed breakout is widely considered a strong bearish signal. Possibly adding extra downward pressure on prices, safe-haven asset gold – which has been inversely correlated with BTC since November – found acceptance above $1,300 on Friday. At the time of writing, BTC is changing hands at $3,430, representing a 3 percent drop on a 24-hour basis.

Daily chart

On the daily chart, BTC charted a bearish gravestone doji on Saturday, meaning the day began with a positive move but ended flat on the day. Adding to the bulls’ woes is the negative follow-through as represented by the drop to six-week lows today. The 14-day relative strength index (RSI) is also reporting a range breakdown below 40.00. So, the path of least resistance looks to be to on the downside, and the bulls will likely feel emboldened only above $3,658 (the high of the gravestone doji).

4-hour chart

As seen in the above chart, BTC’s triangle breakout on Saturday was short-lived and the cryptocurrency has now found acceptance under the lower edge of the triangle. The chart also shows a Bollinger Band breakdown, with a convincing break below the lower band. The RSI, however, is reporting oversold conditions. As a result, BTC may revisit $3,500 before resuming the drop toward the December lows.

Weekly chart

The 10-week MA is still trending south, indicating a bearish setup. There are, however, signs of indecision in the marketplace, as represented by last week’s classic doji candle. Further, a sustained drop in trading volumes likely indicates bearish exhaustion. The outlook, therefore, would turn bullish if BTC ends this week above the doji candle high of $3,658.

View

  • BTC risks falling to the December low of $3,122 in the next few days, having confirmed a range breakdown with a drop to six-week lows today.
  • A downward move could be preceded by a minor bounce to $3,500, as the RSIs on the 4-hour and the hourly chart are reporting oversold conditions.
  • The outlook would turn bullish if the oversold conditions on the 4-hour RSI end up yielding a convincing move above $3,658 (the high of both the gravestone doji and the classic doji).
Disclosure: The author holds no cryptocurrency at the time of writing. Source: www.coindesk.com