FreeBitcoin

Resistance is futile! 3 reasons why Bitcoin mining will never go away

Resistance is futile! 3 reasons why Bitcoin mining will never go away

Numerous governments have tried to ban Bitcoin mining, but data and insights from those in the mining industry suggest that this is easier said than done.

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Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?

Ethereum active addresses have continued to decline. This follows the market crash where the price of Ethereum had dropped to below $ 1,000 before staging another recovery. This decline has shown various implications for the digital asset and also points towards how investors could be feeling towards the digital asset.

Activity Falls To 2020 Lows

Data from the Block shows that the active addresses on the Ethereum network on a seven-day basis are down. These active addresses had hit a new all-time high back in June 2021 when the bull market had been in full bloom. The rise in active addresses was attributed to new investors moving into the digital asset due to the immense success it had seen so far at that point.

Related Reading | New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $ 19,000

However, as the price of the digital asset had begun to suffer, active addresses had gone down with it. This came to a head in the middle of June 2022 when the crypto market had experienced arguably the worst market crash in its more than a decade of existence. Ethereum had quickly declined from around $ 1,800 where it had been trending and touched a low below $ 900.

Following this, there had been an uptick in the active addresses as investors scrambled to move their funds to avoid further losses. However, as sell-offs have died down, the number of active addresses has also taken a nosedive.

ETH active addresses decline | Source: The Block

Last week, it hit a new two-year low with 403.38k active addresses on Ethereum on a rolling 7-day basis. This had been in line with the number of new addresses on the network on the same rolling basis which had also fallen to December 2020 lows.

Ethereum In Response

With the new week just starting, the implications of the decline in active addresses are still yet to be seen. However, it does show what investors may be doing in regards to their holdings. One of these could show that there is now fatigue in the sell-offs that have rocked the market in recent times. As such, most investors are not moving their coins around in order to dump them.

If following historical movements, this could also mean that there is a recovery coming for the digital asset. Given that the last that the number of active addresses was this low, right before the 2021 bull run, a halt in sell-offs could definitely see the cryptocurrency retrace upward.

Related Reading | Leading Crypto Exchanges See Negative Funding Rates, Have The Bears Taken Over?

However, if a recovery is on the charts, it will be a hard-fought battle given the resistance that is building just above $ 1,200. If ETH is able to break this resistance, it will put it right above its 20-day moving average, providing the momentum needed to test $ 1,500 once more.

Featured image from Admiral Markets, chart from TradingView.com

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NewsBTC


Top 5 cryptocurrencies to watch this week: BTC, SHIB, MATIC, ATOM, APE

Top 5 cryptocurrencies to watch this week: BTC, SHIB, MATIC, ATOM, APE

Traders are taking a hands-off approach to Bitcoin and altcoins until BTC successfully flips the $ 20,000 level back to support.

Cointelegraph.com News

Jed McCaleb’s XRP bag is almost gone, Ethereum’s difficulty bomb delayed and FTX inks deal with BlockFi: Hodler’s Digest, June 26-July 2

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Hester Peirce expresses strong support for crypto spot ETFs and regulatory structure

Hester Peirce expresses strong support for crypto spot ETFs and regulatory structure

The pro-crypto SEC commissioner and “Crypto Mom” had sharp words for SEC behavior toward Bitcoin spot ETF sponsorship applicants, delivered at a libertarian forum.

Cointelegraph.com News

Traders debate whether Solana (SOL) is a buy now that it’s down 87% from its all-time high

Traders debate whether Solana (SOL) is a buy now that it’s down 87% from its all-time high

SOL price is 87% down from its all-time high, but do improving fundamentals strengthen its investment thesis?

Cointelegraph.com News

Tracking Whales, What This Bitcoin Divergence Could Hint About BTC’s Price

Bitcoin is trending downside on lower timeframes and seems to hint at future losses. The number one crypto by market cap records a 3% loss in the past week, but there is a potential sign of hope for the bulls.

Related Reading | Why Ethereum Could Trade At $ 500 If These Conditions Are Met

At the time of writing, Bitcoin (BTC) trades at $ 20,000 with a 1% loss in the last 24 hours.

BTC trends to the downside on the 4-hour chart. Source: BTCUSD Tradingview

As a pseudonym trader pointed out, Bitcoin whales are currently buying into BTC’s price action and could be hinting at a future relief bounce. The trader used data provided by Material Indicators to show what the different investors’ classes are doing while BTC records losses.

As seen below, investors with bid orders of about $ 100,000 (purple in the chart below) have increased their buying pressure as almost every other and smaller investor class sells into this price action. This divergence could hint at a bounce as these BTC whales often anticipate or create price trends. The pseudonym trader explained:

Whales (purple) are market buying while #bitcoin price is flat. Historically, purple is the most important class for future price action. Clear divergence, hopefully it will play out this time.

Bitcoin whales (brown in the chart) also saw a small uptick in buying orders as BTC returns to the area of around $ 20,000. This investor class has been mostly dormant in the current market environment, but their recent involvement highlights the importance of BTC’s current levels.

BTC whales (purple and brown on the chart) buying into the current PA. Source: Material Indicators

In that sense, Material Indicators records massive bid orders for BTC’s price around this area from $ 19,900 to $ 20,000. There are over $ 20 million in bid order on these levels alone with an additional $ 6 million at around $ 19,500, and over $ 10 from $ 19,000 to $ 19,000.

In other words, there seems to be enough liquidity for Bitcoin to hold at its current levels for the time being.

BTC’s price with important levels of support (blocks in yellow and red below the price) on lower timeframes. Source: Material Indicators Can Bitcoin The Bitcoin Bulls Score A Green Monthly Candle

At higher timeframes, additional data provided by Material Indicators records an important liquidity zone between $ 17,000 and $ 20,000. Large market participants could attempt to push down the price to fill these orders which could hinder the bulls’ attempts to save the monthly candle.

Analysts from Material Indicators wrote:

Bulls are defending the 2017 Top, but with one day to go it’s going to be almost impossible to print a green Monthly candle. Still a chance for green on the Weekly. Expecting volatility. One way or another, Bitcoin is going to breakout or breakdown very soon.

Related Reading | Extreme Fear Remains: Recapping What’s Behind The Crypto Market Panic

The analysts expect a potential relief in the coming days after a potential retest of the yearly lows. Any bullish thesis would be invalidated if BTC loses $ 17,500.

Trend Precognition is flashing a pretty strong Long signal on the #BTC Weekly chart. Signal won't print until the W candle closes, but indicates that we could see a run at the 200 WMA this week. Happy to test the lows first. For me, sub $ 17.5k invalidates. #NFA pic.twitter.com/hvs1as44qG

— Material Indicators (@MI_Algos) June 28, 2022

NewsBTC

Are custodied crypto funds at risk? Industry veterans explain

Are custodied crypto funds at risk? Industry veterans explain

Investments under custody are usually very safe, until the accountability of the custodian is called into question.

Cointelegraph.com News

Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF

Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF

“The approval of each and every Bitcoin-linked investment product strengthens our arguments about why the U.S. market deserves a spot Bitcoin ETF,” said CEO Michael Sonnenshein.

Cointelegraph.com News

BTC price tops 10-day highs as Bitcoin whale demand sees ‘huge spike’

BTC price tops 10-day highs as Bitcoin whale demand sees ‘huge spike’

Dip-buying appears to be in full swing among whales, new data shows, but analysts remain wary on the outlook for the short term.

Cointelegraph.com News