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Cryptocurrencies Outlook for July 07 – Bitcoin Still Moving in a Descending Channel!

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The Bitcoin is still the dominant force driving the rest of the cryptocurrencies. Right now its price is consolidating in a slightly descending wide channel.

Recent Developments

Bitcoin Hash Rate surges

Bitcoin has hit an all-time high hash rate, as shown in Blockchain.com. This fact evidences the growing interest in mining, which can be seen to have begun to increase on Jan 19, coinciding with the bottom of the cryptocurrency.

Furthermore, According to a Coindesk article, Steven Mosher, the head of Canaan Creative, maker of the Avalon miner, told Coindesk that the surge of the Bitcoin had increased its demand in a scenario where supplies are already short.

“It looks like a return to the 2017 Q3, Q4 conditions, where demand was three times the supply.”

Source: Coindesk.com

Morgan Creek Digital Assets Co-Founder Anthony Pompliano holds 50% of his wealth in bitcoin.

Anthony Pompliano predicts a $100,000 bitcoin price by 2021, basing that prediction on a fixed-supply-and-increasing-demand scenario. He also emphasised the importance of diversification.

“I would make the argument that having 100% exposure to fiat currencies is a really bad idea. Right? Because if one of those fiat currencies that you have 100% of your wealth in either hyperinflates or fails, you’ve got a lot of problems.”

Source: cryptoglobe.com

Software engineer Launched Heiswap: An Ethereum mixer

Kendrick Tan, a software engineer worried by the lack of privacy in the ethereum ecosystem has launched Heiswap, a cryptocurrency mixer.

Currently, Ethereum transactions can be easily tracked from end to end using simple blockchain analysis. The Heiswap mixer hides the transactions.

In this system, a user deposits a fixed denomination of tokens into the Heiswap smart contract, which is then “matched with another user’s similarly denominated sum in order to hide a transaction’s true source”.

Source: beingcrypto

Libra’s Key Security Components Analysed

In this article by coindesk.com Steven Sprague discusses his white paper about Libra’s crypto key components. In it, he states his belief that Libra designers forgot or left out the “foundational components of user security”.

It’s a lofty aim. However, after a review of the technical documentation describing the Libra protocol and its planned ecosystem, I believe the company left out the foundational components of user security.

  1. Protection of the private key
  2. Proof of user consent
  3. Decentralized compliance
  4. Global privacy

Source: coindesk.com

 

Chart Analysis

Bitcoin


Bitcoin price is still moving in a wide descending channel, but the current action is taking place above the green area that acts as support. This area, together with the upper trendline makes a triangular formation. It is necessary for the bulls to see bitcoin break out this upper trendline. The bears need the price to move below 1,500 to confirm a visit to the $9,000 level.

The stochastics are in the mid-region. A breakout above 11,500 will create a bullish crossover in the indicator. The MACD is slightly bearish, and the CCI pointing upward seems to preclude a bullish action.

Ripple



XRPUSD has crossed the lower trendline momentarily, but it didn’t hold below it for long. Yesterday, it created a large bullish candle, then two retracement reactions and the last 12 hours has recovered and is moving upward. Stochastics, MACD and CCI are aligned and bullish. Since the price is moving in a consolidation area, a price movement above 0.408 will be a good signal to go long.

Ethereum



As we can see in the above chart, the Ethereum 4H price seems to be starting a bullish phase. The price is above the upper blue trendline, which defines the upper boundary of the pennant formation, it has tested it and bounced up. All three indicators, Stochastics, MACD and CCI, point to a bullish price movement. At this level, the reward-to-risk ratio is good too for a bet with a target at $350.

Litecoin


Litecoin is moving inside a triangular formation, which we all know is an indecision area. Therefore to make any buying or selling decision, we need to see the price move outside this region in a convincing manner. That said, the Stochastics and CCI point to a bullish continuation, while the MACD does not show any significative indication. This bullish movement can be confirmed if we see the price above $121.

Binance Coin



Binance has been making a correction of its previous top mace on June 22. The 4th of July it made a bullish candle that broke up the upper trendline of this triangular formation. After several correcting candles that is moving the price sideways, we are seeing another attempt of the bulls to drive the action. The stochastic seems to have made a bullish crossover and the CCI has moved decisively to the bullish side. The MACD seems to follow these two indicators. The overall outlook is bullish.

 

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