Watch Ethereum As Bitcoin Loses Momentum

You hit it right when you bet that Ethereum would go higher this July as I called for a complex correction to limit the growth of this cryptocurrency around $3k.

Ethereum

The price hit that upside barrier and stopped there for a while within a visible sideways consolidation. After that, it broke to the upside, as the pause was a harbinger of the uptrend’s continuation. The price quickly hit the $4k handle, and now we could observe a minor consolidation. Continue reading "Watch Ethereum As Bitcoin Loses Momentum"

What Is Proof Of Work And Proof Of Stake?

One of the best features of cryptocurrency is that there is no need for a central authority like a bank to sign off on business transactions. So I can do business with someone without a massive bank or other financial behemoth looking over my shoulder. And so long as the terms of the transactions are fulfilled – whether it’s buying something with Bitcoin and executing a contract with Ethereum – the deal is done.

Driving this whole process is a network of computers with multiple copies of all the transactions – including the one I just mentioned. When everyone on the blockchain verifies these transactions, the transaction is added as a new block. The process is complete until the next transaction comes around the corner.

But here’s the rub: When I first go into crypto, I knew that people would do all this work on the blockchain because they would get paid in coins that made up the blockchain. But if you have a ton of people all doing the same work, who decides which person gets paid?

Well, there’s just two ways of getting paid if you work on a blockchain: Proof of Work and Proof of Stake. And here’s the nitty-gritty on both.

Why Do We Need Proof of Work or Proof of Stake?

The answer is pretty straightforward: To manage the issuance of new coins and to make sure people don’t cheat. Continue reading "What Is Proof Of Work And Proof Of Stake?"

Bitcoin and Gold Update: What's Next?

Bitcoin triggered the new buy setup posted last week.

Most readers confirmed that they see the new bullish opportunity in Bitcoin, and the largest part were ready to add or enter the new trade.

Bitcoin Daily Chart

The new buy setup repeated the first trade setup as the setback was not deep again as it only reached the same 38.2% Fibonacci retracement level.

The Friday brought the expected trigger above the previous Saturday’s top of $48,150. The setup is active now and should limit risk below the valley of correction to around $43,900. The risk/reward is good at 1:4, with the same target at the all-time high of $64,899. Continue reading "Bitcoin and Gold Update: What's Next?"

Bitcoin Buy Setup In Profit Range

It looks like I have posted the Bitcoin Bullish Setup at the right time as the price precisely followed the preset path - first down into a correction, which hit the minimum area of 38.2% Fibonacci retracement level. Then up to break above the first minor top, that activated the buy trade setup.

The majority of readers were bullish, with 61% votes.

Bitcoin Daily Chart

We can see the clear difference between outlooks and setups. I posted both the Bullish setup and the Bearish setup in case the correction would be extended. They were based on opposite outlooks. We do not have to guess; we wait for which setup would work. Continue reading "Bitcoin Buy Setup In Profit Range"

Bitcoin Update: Reversal Or "Dead Cat Bounce"?

Bitcoin was in the “To Be Or Not To Be” situation last month as the giant Head & Shoulders pattern emerged to target the utter annihilation of Bitcoin.

This strong support that most of you have shown in the last poll for the main coin kept it from the collapse into the abyss. Let me show you on the chart below what has happened with the terrifying pattern since then.

Bitcoin Head And Shoulders Chart

The model looked just perfect as the price reached the final trigger of the Neckline after building the anticipated Right Shoulder to accumulate enough power for the breakdown. However, the first attempt in late June has failed. The next attempt at the end of July was not as powerful as the angle of attack was not sharp enough, and momentum quickly evaporated after a false breakdown. Continue reading "Bitcoin Update: Reversal Or "Dead Cat Bounce"?"