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Bitcoin [BTC] will drop to $4,000; market is “overbought,” suggests Weiss Ratings




Bitcoin [BTC] will drop to $4,000; market is "overbought," suggests Weiss Ratings
Source: Pixabay

Bitcoin [BTC] is presently riding a major bull wave, with the resistance level, the 200-MA level, and even the $5,000 mark crossed all in one week. However, some are questioning the longevity of this wave. Weiss Ratings, the crypto-specific ratings company, is in the news after it pessimistically pointed out that a pullback is imminent.

According to their April 12 tweet, Weiss predicted that Bitcoin will drop down to $4,000, a price it was last trading at on March 26. Crediting their “model,” while providing no supporting metrics or parameters, the crypto-community turned on Weiss and did not respond positively to their bearish claims.

Weiss’ prediction would mean a 21.87 percent drop in the price of the coin, much higher than their daily gain of 17 percent on April 1, which set-off the aforementioned price rally. Given Bitcoin’s hold on the collective market, a drop of this proportion could spell doom for the entire coin market.

Following the coin’s rapid price ascendance and the fever of a possible bull run, BTC purchases are currently through the roof. Citing support at $5,000, Weiss added that the market was “short term overbought.”

Weiss Ratings’ full tweet read,

#BTC dips below $5K, but back up. Support is holding at $5K and its pulling other #cryptos up as well. The market is short term overbought, and our model has been pointing to a pullback to the 4,000’s. #crypto.”

The crypto-rating agency’s claim comes on the back of the first correction since the April rally began. After reaching a high of over $5,420, the king coin dropped by a massive 8.51 percent, and plummeted below the $5,000 mark on April 12.

Despite the $5,000 drop being brief, it triggered a host of analysts stating that this correction was the first of many. Several predicted that the bottom would be re-visited given the rapid nature of the Bitcoin price push.

A drop of this proportion would certainly drag down the hopes of the collective cryptospace and would add to opposing claims that the cryptocurrency market is rife with volatility. Furthermore, with the SEC stating that volatility is the prime reason behind the stalling of a decision on the publicly traded Bitcoin product, the Bitcoin ETF proposal scheduled for May 2019 would be delayed once again.

The community might not take Weiss at its word though, given the past comments they’ve made with reference to market prediction. Immediately after the price rally ensconced the market, Weiss stated that they had informed their “premium subscribers” that the bear market was “officially over,” crediting their “model” yet again.

Even then, Weiss did not provide any proof of intimation of the stated information or market study data with indicators to back their claims. Additionally, users hit back, calling Weiss’ bluff, stating that the point of the prediction was to make it before-the-fact, and not after it.

Two coins that Weiss pegged as being reliable both on a long-term and short-term basis were EOS and XRP. However, market results beg to differ. XRP has held firm with several adoption cases, while EOS has seen its market cap and position on the coin ladder fall.

EOS, took the top spot for risk-return and finished second, behind XRP, on the technology and adoption metric, in the Weiss Ratings’ chart. Since then, EOS has seen Litecoin [LTC] and Bitcoin Cash [BCH] overtake it. At press time, the crypto pegged to be a “competitor to Ethereum,” is languishing in the sixth spot, behind BCH by over $170 million.

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Bitcoin [BTC]: Andreas Antonopoulos breaks down life cycle of a transaction on the BTC blockchain

Akash Anand



Bitcoin [BTC]: Andreas Antonopoulos breaks down the life cycle of a transaction on the BTC blockchain
Source: Pixabay

Bitcoin [BTC] and its intricacies have been a concept that many users in the cryptoverse have been trying to understand since its inception. In his latest video, Andreas Antonopoulos, a major Bitcoin bull and the author of Mastering Bitcoin, elucidated on the life cycle of a wallet transaction from start to finish.

Antonopoulos stated that from the point someone sends a transaction from a wallet to its confirmation on the Bitcoin blockchain, the wallet constructs a transaction by accumulating the BTC in the user’s wallet and assigning the addresses. The user’s wallet then transmits the transaction’s information to one of the many nodes it is connected to, from where it can be sent to ‘1, 2 or even 8 other nodes’. He added:

“The transaction is then transmitted to other nodes, which can be mining nodes, e-commerce payment gateways, and many such options. Each of those nodes will receive the transaction from your node and each of those, in turn, will validate every single transaction. When the nodes receive the transactions, they don’t’ know whether it was created by you or was forwarded and hence each of these transactions need to be validated individually.”

Antonopoulos went on to state that if all the nodes are validated, ie. if the payment details are correct and if it is confirmed that no double spend has occurred on the blockchain, then eventually through the process of ‘flood propagation’, the transaction information will be sent to every other node, out of which some may be mining nodes. In his words:

“Once the transaction reaches the mining pool, it maintains a pool of unconfirmed transactions, like a bucket where all this unconfirmed data is stored. This is the pool known as the mempool. Also, know that there isn’t THE mempool rather there is ‘A’ mempool. Information in separate mempools can be in a 99 percent overlap but there will never be a case where it will completely similar.”

According to the author, the mempool also serves the purpose of providing transaction for a miner to add a new block after which ‘the race is on’ for the next block. Miners usually have to construct a block and then solve the Proof of Work on it to eventually make it a confirmed block. Antonopoulos claimed that once the block is made, the information will be sent to the mining equipment to solve the PoW on that particular block and probably after a “billion hashes” the miners will find the block. The Bitcoin bull elucidated on the information transfer back by saying:

“Once the PoW is solved, the mining node will propagate the node back the same way as it received. The nodes validate the block on the way back and once all the nodes confirm its validity, then the user’s wallet will know that there is a confirmation on the transaction. That is the entire life cycle of a transaction.”

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