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Crypto Price Analysis September 2: BTC, ETH, LTC, BCH, EOS

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The crypto market is trying to grow after another correction.

Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.

The Ethereum is ahead of the others that do not hurry to renew the highs. Moreover, on D1s of such cryptocurrencies as the Litecoin or Eos, reversal patterns are forming, promising a decline, and if the buyers fail to keep the nearest support levels, the crypto market may experience another serious drawdown. On the Bitcoin chart, there is a similar structure – a Triangle pattern. Here, the bulls are so unwilling to let the price go above $12,000 that it breaks away the support level and secures under $11,055, which may entail falling to $10,000 and lower, to $8,825.

Bitcoin

On D1, the Bitcoin is correcting by a Triangle pattern; if the upper border of the pattern is broken away, and the price secures above $12,495, we may expect the asset to grow to $14,230. Another confirmation of this scenario is the return of the RSI values above the support line. The scenario may no longer be valid if the lower border of the pattern is broken away, and the price secures under $11,055, in which case the price may correct significantly to $8,830.

Photo: RoboForex / TradingView

On H4, the price managed to bounce off the support level confidently. A strong signal confirming the growth would be a breakaway of the resistance line on the RSI; however, for now, there was just a bounce off it. The continuation of the bullish trend may also be confirmed by a breakaway of the upper border of the Triangle; for this, the price only needs to secure above $12,065. This is a strong resistance area: as you may see, the price pushes off this level for the third time, which also indicates that sellers are still putting pressure on it.

Photo: RoboForex / TradingView

Ethereum

On D1, the Ethereum quotations keep growing actively. The price bounced off the lower border of the Bollinger Bands indicator and easily broke its upper border, demonstrating an uptrend. Another bounce off the support line on the RSI supports further growths of the asset. The aim of the growth is $537. Also, a large Double Bottom pattern may form, and in case the price works it off, the aim will move to $645. This scenario, positive for buyers, might be canceled by a breakaway of $365, in which case the asset will further decline to $250.

Photo: RoboForex / TradingView

On smaller timeframes, the price is pushing off the resistance area at $495. However, the resistance line on the RSI was broken away, which means the asset may go on growing to $537. The growth may not happen if the price secures under$413, which will signify a breakaway of the lower border of the ascending channel and a possible decline deeper to $364. A strong signal confirming the growth is the cancellation of the Head and Shoulders reversal pattern that was going to form on the chart; now the price may easily go up for the height of the pattern.

Photo: RoboForex / TradingView

Litecoin

On D1, the quotations are bouncing off $65, which is the key resistance area in the buyers’ way. If sellers seize the initiative, and we witness falling below $53, only further falling to $40 will be possible, because the current price structure looks like a Head and Shoulders pattern is forming. However, the price may still secure above $69, which will mean a breakaway of the upper border of the Triangle. In this case, we may expect growth to $76 and then – to $85. Another signal confirming this movement is a bounce off the support level on the RSI.

Photo: RoboForex / TradingView

On H4, the quotations have secured above the upper border of the descending channel, which means that the asset may go on growing. A strong signal confirming the growth is constant bounces off level 30 on the RSI. The scenario may be canceled by falling below the lower border of the ascending channel and securing under $53.55, in which case the price may proceed further down to $46 and start working off the reversal pattern from D1.

Photo: RoboForex / TradingView

Bitcoin Cash

On D1, the quotations keep pushing off the support level, as well as the ascending trendline on the RSI. The price failed to break away the lower border of Bollinger Bands. However, for the growth to be confirmed, we need to see the upper border be broken away and the price secure above $338, in which case the growth may continue to $413. The growth might be canceled by a breakaway of the lower border of the ascending channel and securing under $247, which will entail further falling to $203.

Photo: RoboForex / TradingView

On H4, the quotations have left the Wedge pattern, which means the asset is going upwards, working off the pattern, with a potential goal at $370. An additional signal here will be a breakaway of the trendline on the RSI; the price has already bounced off this line, which means the price will go on growing to the local high.

Photo: RoboForex / TradingView

EOS

The cryptocurrency keeps testing the resistance level. Note that there is also a reversal Head and Shoulders pattern, as in the case with the Litecoin. If the lower border of the ascending channel is broken away, and the price secures under $2.90, we should expect the quotations to fall to $2.20 and lower because the asset will be working off the reversal pattern. For buyers, it is important that the price renews the local high and secures above $3.95. In this case, we might say that the reversal pattern is canceled and the ascending impulse is developing confidently to $4.65 and higher. A bounce off the support line on the RSI speaks for this idea.

Photo: RoboForex / TradingView

On H4, we can also note a reversal pattern forming. The price has just bounced off the area where the right Shoulder might complete, and if the quotations fail to rise higher, we might expect only falling. SO, for buyers, it is vital to see a confident breakaway of the local high and prevent the price from falling below $2.87 – only then we might expect the uptrend to resume.

Photo: RoboForex / TradingView 

Disclaimer: Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Altcoin News, Bitcoin News, Cryptocurrency news, Ethereum News, News

Kseniia Klichova
Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.



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ContextLogic (WISH) Stock Price Still Low, Has 50% Upside

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In the recent past, ContextLogic (WISH) stock has been referred to by market watchers and analysts as the next short-squeeze target.

ContextLogic Inc (NASDAQ: WISH) is the company that’s linked with Wish Mobile, a popular shopping app. The good thing is that the company is not only meme-based but it also addresses emerging and current needs of the e-commerce market. The company confesses that performance, particularly logistics revenue, has been growing impressively. The revenue growth has been increasing gradually but the stock, with a target price of $20, is definitely a buy.

WISH: Just a Meme Stock?

In the recent past, ContextLogic (WISH) stock has been referred to by market watchers and analysts in WallStreetBets Forum as the next short-squeeze target. Two other meme-based stocks, GameStop Corp (NYSE: GME)and AMC Entertainment Holdings Inc (NYSE: AMC) have also done well and become popular on the forum. However, analysts suggest that caution should be observed when dealing with WISH as it may turn out to be another short target. For its total outstanding shares, WISH’s interest ratio, which is a bit low, currently stands at 4%.

ContextLogic became a public-listed company in 2020 with the price of its stock valued at $24 each. However, the initial public offer (IPO) didn’t perform as expected leaving investors disappointed. When the stock started trading, the opening price was $22.75 and even went as high as 32.85 but then started trading low and lower in the following months. The lowest WISH traded was $7.52 before it started drawing attention from WallStreetBets. ContextLogic executives however believe that the company has a lot to offer other than the WallStreetBets mentions and attention.

Client Acquisition and Retention

Being an E-commerce portal, ContextLogic has gained from the pandemic situation. In FY 2020, WISH’s sales increased by 34%. Another 75% sales increase was gained in the first quarter of 2021. The increased downloads of the WISH shopping app were the cause of the improved revenue. Currently, the app has 100 M and above active users each month in over 100 countries.

In 2020 alone, ContextLogic bagged an extra 17M users, and the trend has been growing since. With the discovery and a discount-based experience, WISH is sure to retain its customers for a long time to come. Additionally, the shopping experience is further boosted by the gaming elements that have been embedded on the platform. According to WISH’s market research team, 70% of the company’s sales are impulsive and do not at all involve any search query. Also, 90% of the company’s sales are done via the WISH app.

In this digital age, most people do their shopping online and via mobile applications. From 2019 to 2024, the e-commerce market (global) was expected to increase from $3.4 trillion to $6.3T, and most of the transactions were to be done via mobile apps. This was believed to be possible because most online shopping platforms integrate AI into their businesses, making the shopping experience process safe and secure.

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Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.



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Hedgeye Analyst Develops Model Validating S2F with $1M Bitcoin Price Target

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Besides this predictive Bitcoin tool, Hedgeye also has a quantitative Bitcoin dashboard called the “Bitcoin Trend Tracker.”

Hedgeye analyst Josh Steiner has developed a model in which he drew on the fundamental analysis of the Stock-to-Flow model of Bitcoin (BTC) in comparison with other factors, to project a $1 million price for Bitcoin before the end of this decade. Hedgeye Risk Management is an investment research and financial media company based in Stamford, Connecticut, and specializes in market analytics through the quantitative study of industries in which they operate.

The Steiner developed fundamental analytics model focuses on Bitcoin, the world’s first and largest digital currency by market capitalization. In the past decade, BTC has toppled its own records and attained over $1.2 trillion valuations back in April when it hit an all-time high price above $64,000. While unfavorable market conditions – including harsh regulations and energy consumption FUD – have dragged the prices down, investors are still looking for avenues to get in on the train. Hedgeye gives the quantitative basis that can help all classes of investors make the right investment push, and mitigate risks.

The Hedgeye Analysis Prediction $1M Price for Bitcoin Per the S2F Model

The Stock-to-Flow model factors in the rate at which an asset is released into the market against its existing supply. When the United States real estate niche is considered based on this model, the S2F ratio is pegged at 93x. The total supply of new housing units is about 1.5 million units annually, against a total of 140 million.

Gold has an S2F ratio of approximately 72x as roughly 2.75 tonnes are mined annually against 200k tonnes in current circulation. When Bitcoin is put into perspective, the current S2F ratio is pegged at 54x atop 344,000 mined coins annually, against an 18.6 million total supply. Unlike real estate and gold which has an almost static S2F for many years now, Bitcoin’s S2F model is expected to grow over time.

Drawing on the 4-year halving event, Bitcoin’s S2F ratio is expected to increase 10-fold every 12 years. This will bring the Stock-to-Flow model to 1000x by 2036, and to 10,000x by 2048. This exponential increase is poised to impact the price of the asset in a corresponding manner. Steiner developed the publicly accessible power regression relationship y=1.3268×2.4769, a quantitative relationship that predicts Bitcoin’s price in relation to the S2F model.

“Every 10-fold increase in Bitcoin’s Stock-to-Flow ratio, which will happen every ~12 years going forward, has produced a ~1,000-fold increase in Bitcoin’s price. And that hasn’t happened once, but twice,” according to a description of the effect of the relationship.

Based on this projection, Bitcoin is on track to attain a price of $1 million by 2030, $10 million by 2039, and by $100 million by 2057.

Other Hedgeye Products

Besides this predictive Bitcoin tool, Hedgeye also has a quantitative Bitcoin dashboard called the “Bitcoin Trend Tracker.” This tracker provides exhaustive, daily quantitative analytics on a range of cryptocurrencies and Exchange Traded Funds. This tool is useful for both retail and institutional investors. The dashboard breaks down the price, volume, and volatility among several other metrics of each asset it tracks.

This and more tools brandished by the Hedgeye team seek to give investors a similar resource available to traditional market players, all for an informed and productive investment engagement.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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Founders of Africa’s Crypto Investment Firm Flee to UK with 69,000 Bitcoins Worth $3.6B

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Since both the founders have gone missing and are not returning any calls, the investors have involved Hanekom Attorneys, the South-Africa-based law firm, to manage the chaos.

Two brothers and founders of Africa’s crypto investment firm AfriCrypt have gone missing following an alleged hack that jeopardized their clients’ accounts and wallets. 20-year old Ameer Cajee and 17-year-old Raees Cajeee have reportedly shifted the collective investor fund from an account at Johannesburg-based First National Bank (FNB) before retreating to the United Kingdom.

Africrypt, a currency exchange service founded in Johannesburg, South Africa, has gone on to become one of Africa’s largest and most successful AI trading companies in only a few years. It was established in 2016, by the child prodigy Raees Cajee. Ever since its commencement, the firm has seen an astronomical growth connecting banks, payment providers, and digital asset exchanges.

In April, the investors of Africa’s crypto firm Africrypt were mailed about the alleged ‘hack’ that had put the customers’ crypto-assets in a compromising situation. To handle the unpleasant circumstances, the platform was set to shut down, following the freezing of all the accounts. The sponsors were requested not to report the same to authorities, claiming that this might ‘delay the process of retrieval’.

Since both the founders have gone missing in action and are not returning any calls, the investors have involved Hanekom Attorneys, the South-Africa-based law firm to manage the chaos. According to the law firm, the financial reserve was placed through an array of tumblers and mixers, making it effectively untraceable. Since almost 69,000 bitcoins worth $3.6Bn have gone missing, the attorneys have cautioned several international exchanges about the reported scam, to watch out for any Bitcoins being converted.

Making matters worse is the fact that South Africa’s Finance Sector Conduct Authority cannot initiate a legal inquiry since cryptocurrency has not lawfully been regarded as a financial product in the country. If the money is not reclaimed, this incident will go down as the greatest cryptocurrency scam in history.

The event reminds us of Canada’s QuadrigaCX exchange case of 2018 when Gerald Cotten, the founder of Quadriga Fintech Solutions died on a trip to India. Since Cotten held the password to customers’ offline cold wallets, the company lost around $250 million owed to its 115,000 customers. The company was declared bankrupt in 2019, ceasing all the operations immediately. This event, however, will effortlessly eclipse the money lost in the Canadian exchange.

A different class of sponsors/investors have started liquidation activities against Africrypt.  The purported theft has also been communicated to the Hawks, South Africa’s Directorate for Priority Crime Investigation (DPCI). This special division exclusively targets organized crime, economic crime, and corruption.

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