Wednesday, 14 November 2018

Bitcoin’s energy consumption worries

A study conducted by PwC reveals that Bitcoin has doubled its energy consumption over the past six months and the significant rise in consumption raises doubts about the long-term viability of the model, leaving the door open for alternative distributed consensus models.

Bitcoin lacks appetite, especially as other cryptocurrencies remain active in developing, extending and upgrading their networks.

BTC/USDT rebounded from the 50-week moving average, 7600, after the move below 8260 (major 38.2% retracement on April - May rally) reversed the short-term trend to negative last week. The pair is currently in the bearish consolidation zone, but the negative trend is losing momentum. We maintain a neutral view on weekly price between 8000 – 8875 area.

Talks on Ether’s status weigh on bulls

The hourly ETH/USDT chart suggests that the positive momentum is building for an eventual move above the 700 level, after the formation of a double bottom at 645 level. Such move should pave the way for a recovery toward 800.

Discussions on Ethereum’s legal status continue occupying the headlines. In one hand, these talks increases thrust regarding the value of its underlying structure and operations. But on the other hand, it raises doubts about what would happen to Ether’s price if it is classified as a stock.

Last week, CME launched a real-time and daily reference price indexes for Ether, hinting that it could soon launch futures on Ether.

We maintain our positive view on Ether in the long-run, with 3-month target price set at 850.

Bitcoin Cash: faster & smarter

Bitcoin cash upgraded to 32MB blocks and smart contracts recently. Unfortunately, a portion of users have not upgraded, and as a result they have been left outside of the network. But the latest news suggest that miners did upgrade showing their full support to the network.

The negative momentum in BCH/USDT has slowed after the pair successfully held support at 1000 level. A move above 1300 should help reversing the short-term trend and pave the way for a recovery to 200-dma (1414). Support is eyed at 1184 (weekly pivot) and 1000 (psychological level & weekly support).

Despite losing some ground versus Bitcoin, BCH/BTC remains above the 200-dma (0.1370).

Litecoin, humble

Sentiment in Litecoin remains subdued. In the absence of major news, LTC/USDT is expected to fluctuate parallel to the major cryptocurrencies. We note that Litecoin has lacked momentum compared to the rest of the sector in April’s bull market and the slower momentum could again keep Litecoin behind the curve.

The weekly pivot, 130, could lend support and encourage a rise to 138/148 area, including 50% and 38.2% retracement on April – May rise. Support is eyed at 120, if broken, could increase the selling pressure toward the critical 100-support.

source: fxstreet.com 
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