CBX Weekly Newsletter // 10 June 2020
- Bitcoin’s Price Analysis
- Bitcoin Price Volatility Hits 3-Month Low
- Monero-for-Bail Project Sees Increased Demand During Protests
Bitcoin’s Price Analysis
It looks like Bitcoin and the Crypto market upward momentum is evidently dead, we can see a few counts of upward push being rejected and sideways trading has been happening long enough.
Upward trendline has been continuously broken as well and is no longer viable, thus this week’s report is based on a new trend line. While still upward, the flag forming is coming together strongly, not much space to move into and new highs are getting harder to come by.
More likelihood to encounter a sell-off this coming week, but not likely to be a massive drop considering the low volatility.
Bearish Scenario:
Short entries can be made roughly from $9,600-$9,800; target higher to lower risk. With Stop Loss orders at $9,950. If prices fall we would expect them to fall to $9,100, a key support / resistance level.
Bullish Scenario:
If the market pushes past $10,500; we expect another bull run pushing prices up quickly to $12,000 level. Key area to watch around $10,500 where entry can be made if expecting a bull run. Stop Loss orders can be placed at $10,000 as the market may easily switch to downtrend if prices are not sustained above $10,000.
Bitcoin Price Volatility Hits 3-Month Low
Bitcoin’s price became the calmest in three months, as volatility revisited levels last seen before the crash on March 12.
The leading cryptocurrency’s 30-day volatility has now fallen over 40%, the lowest level since March 6, according to blockchain analytics firm IntoTheBlock.
The decline in volatility may be explained with the lack of clear direction in the market, even though Bitcoin rallied by over 150% in the two months leading up to the mining reward halving.
Since then Bulls have failed to establish support above $10,000. At the same time, downside has been restricted to around $8,600.
The range has tightened in the last few trading days, with the cryptocurrency trading between $9,300 and $9,900.
A prolonged period of low-volatility price consolidation often leads the way for a big move to either side. The longer the consolidation, the more strong the breakout will be.
Monero-for-Bail Project Sees Increased Demand During Protests
A software program that mines Monero to bail people out of jail has seen an uptick in use as protests over the police killing of George Floyd continue across the U.S. The software is called Bail Bloc and runs in the background of your computer, passively generating Monero that is then distributed to bail funds. According to news site coindesk.com
“I noticed a 20% increase in our hashrate this week as opposed to last week,” Grayson Earle, who developed the Bail Bloc software, said in an email.
“We are dedicated as a project and as individuals to the movement for black lives, and feel that the urgency of the situation requires direct action and people should direct resources to organizations on the ground that can respond rapidly.”
The hash rate is the measure of how quickly the cryptographic calculations for mining are executed. The Bail Bloc hash rate is currently 94.5 KH/s, according to Earle.
Bail funds are used to pay bail for those in pre-trial detention, which can last for weeks or even months otherwise. Since 1970 pretrial detentions have increased by 433%, according to research by the Center for American Progress. In 2015, more than 60 percent of the total jail population in the U.S. was made up of people held for pretrial detention, according to a study from the Vera Institute, a nonprofit that campaigns for justice system reform. In the wake of protests against police brutality more than 10,000 protestors have been arrested in the U.S.
Pilar Maria Weiss, Director of the Community Justice Exchange, a non-profit, said that some bail funds that have more infrastructure accept Bitcoin but many protest bail funds are very informal and therefore only use Cash App for Go Fund Me pages. The Cash App does let users pay or donate using bitcoin though.
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