Bitcoin fails $4,000 test but bullish pattern persists, Bitmain bankruptcy looms

Bitcoin can’t get above $4,000. In fact there is heavy resistance in recent days at $3,950. All attempts to pass that level has been rejected.

Nevertheless, the fall to $3,600 a couple of days ago did not breakdown further, and instead led to a strong bounce of $300, wish confirms a bearish bias. If the price does fall below $3,600 then $3,000 could come back into play.

The Electrum hack on 27 December coincided with the third red candle (the second on Christmas day and the first on 21 December)  of the second shoulder on the inverse head and shoulder seen on the 1-day BTCUSD chart below.

The Electrum hack, which cost a minimum of $750,000, is a reminder of the security issues that still plagues crypto.

Daily trading volume has dropped to $16 billion from $24 billion two days, which takes some of the steam out of the bullish set up seen in the inverse head and shoulders pattern but there could still be some upside from here.

Altcoins on borrowed time says Tone Vays

Tone Vays in comments to Cointelegraph has reconfirmed his bullish stance on bitcoin but thinks the end is in sight for altcoins. Although BTC dominance is just above 51% having slipped from recent highs, the 2018 bear market has reinforced the position of BTC in the market and in the minds of consumers.

Suffice to say Vays’ views haven’t gone down too well with the altcoin crowd.

It is also at odds with the ratings produced by China’s Centre for Information and Industry Development (CCID), which ranks bitcoin 18th and EOS and Ethereum in first and second place.

EOS topped the list with a total score of 156.1 points. Ethereum ranked second, with an assessment index of 136.4. The two indexes are still the lead at the very top. GXchain replaced BitShares in third place with a score of 117.5 in this assessment, while BitShare fell by five in the current evaluation, ranking eighth. Komodo, Ontology, NULS, Nebulas, BitShares, NEO, and Steem shared the fourth through 10th spots. Bitcoin evaluation index stayed in the middle of the list with a score of 96.1, ranking 18th  more

Ethereum has been the outperformer of the past week and is currently priced at $138, trading above resistance at $132.

eToro rejects BSV, Bitmain going bust?

Exchange news sees eToro refusing to list BSV and is offering refunds to holders, in another blow for the forked cryptoasset.

In related news, rumours out of China – see the Odaily story – claim that Jihan Wu and the Jenke Group are no longer the joint chief executives at Bitmain.

This may be a prelude to the closing of the business which has by all accounts been making huge losses in its mining and ASIC business.

This could impact adversely the price of bitcoin Cash if it has to sell down its holding to raise cash to forestall bankruptcy.

Some one named as “Wang” is apparently taking over at Bitmain, says oDaily:

On December 28th, a person close to Bit China told Odaily Planet Daily that Jank [Jenke] and Wu Jihan will be retiring as CEOs of Bitco [Bitmain]. The newly-received person, surnamed Wang, has been in Bitland [the crypto space] for some time and is currently in the transition period of handover. (Google Translates)

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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