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Bitcoin’s 200-week moving average scales new heights as coin inches closer to $8000

Akash Anand



Bitcoin [BTC] 200-week moving average scales new heights as coin inches closer to $8000
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, has been on a path to prove all its doubters wrong with its consistent price surges and market cap gains. Other factors in the Bitcoin ecosystem have also improved, with market momentum and the 200-week moving average showing green numbers.

Research by planB suggests that Bitcoin’s 200-week moving average is growing by 5 percent per month, after a long hiatus. The chart showed Bitcoin’s progress over the years, with a dip in the 200 WMA staying prominent. The 200-week moving average aims to show market atmosphere/trend and whether Bitcoin’s next steps will be in the bear’s realm or the bull’s. Some users in the Bitcoin ecosystem further speculate whether there was a market frenzy coming up, one where the “raging bulls might take over”.

At press time, Bitcoin was trading at $7829, with a total market cap of $138.99 billion. The king coin held a 24-hour market volume of $17.5 billion, which was coming under pressure from the bear as the market was on the verge of a slight downturn.

The Moving Average Convergence Divergence [MACD] also showed a sustained bullish turn for Bitcoin, with the signal line and the MACD line undergoing a bullish crossover. However, that pattern changed after the arrival of the bear in the market.

While the 200 WMA showed positive signs, other parameters like the support and resistance of the cryptocurrency were stuck on a rollercoaster as the coin inched towards breaching the $8000 mark again. This fact was further evidenced by Josh Rager, an analyst and member of the advisory team at Token Bacon, who stated,

“$BTC Update Support that flipped to resistance, flipped back to support Still in a channel and need to break above $8200 – closing there would likely lead up to $8700+ $7900 to $8000 has been the most accumulated price range since May 13th”

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Facebook’s Libra ‘sounds an awful lot like Proof-of-Stake’ and will ‘run into Ethereum’s problems,’ claims Jameson Lopp




Facebook's Libra 'sounds an awful lot like Proof-of-Stake' and will 'run into Ethereum's problems' claims Bitcoin engineer, Jameson Lopp
Source: Unsplash

Facebook’s “The Libra Blockchain” whitepaper has created quite a frenzy, not only in the cryptocurrency ecosystem, but also with U.S. government officials. Some people claim that Libra is not a blockchain, while others claim that it is going to kill Ripple, XRP and other similar blockchains. However, Jameson Lopp had a different view, claiming that the Libra blockchain has not solved massive problems that Ethereum has.

Lopp in his Medium article dissected the whitepaper and stated that the Libra Blockchain will be controlled by a set of authorities in a top-down fashion and that it will eventually move from a permissioned to a permissionless blockchain. The blockchain will offer a global currency – Libra coin, which will be backed “with a basket of bank deposits and treasuries from high-quality central banks.”

Since the whitepaper mentions that it will eventually move towards a permissionless and an open system, Lopp speculates that it “sounds an awful lot like Proof of Stake” and like Ethereum, it will face the same problems. He said,

“Apparently the plan is to open up membership after 5 years and hopefully they’ll have figured out Proof of Stake by then… I expect they’ll run into the same problems as Ethereum!”

Lopp added that “Calibra Wallet,” which is used to store the Libra coins, is the only wallet that can hold the coins for now and that it will require strict KYC/AML compliance. Since the blockchain conveniently replaces “stablecoin” for “resources,” Lopp speculates that it will concentrate more on smart contracts since it is built on a custom smart contract programming language called “Move”.

In addition to facing similar problems as those faced by Ethereum, the Libra Blockchain is facing more issues from a political and a regulatory standpoint. There was a lot of speculation even before Facebook dropped the whitepaper.

According to Reuters, United States House Financial Services Committee Chairwoman Maxine Waters issued a statement to halt/pause any and all developments on the project, until and after the Congress and other regulatory bodies have finished reviewing it. A senior Republican, Patrick McHenry, is also calling for a hearing on Facebook’s new cryptocurrency.

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