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Price analysis 8/25: BTC, ETH, ADA, BNB, XRP, DOGE, DOT, SOL, UNI, BCH

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Price analysis 8/25: BTC, ETH, ADA, BNB, XRP, DOGE, DOT, SOL, UNI, BCH

Bitcoin (BTC) remains on a strong footing after bears failed to capitalize on the rejection near the psychological mark at $50,000. 

The recent price rise in Bitcoin has not enticed longer-term investors to part with their holdings, and Glassnode data shows that the Bitcoin supply held by long-term holders has hit a new all-time high of 12.69 million BTC. This tops the previous record achieved in October 2020.

MicroStrategy’s recent Form 8-K filing with the United States Securities and Exchange Commission shows that the company bolstered its Bitcoin holdings by 3,907 BTC between July 1 and Aug. 23. The company bought at an average price of $45,294. This brings MicroStrategy’s total holdings to 108,992 BTC, with an average price of $26,769.

Daily cryptocurrency market performance. Source: Coin360

However, not everyone is bullish in the short term. John Bollinger, the creator of the popular technical analysis Bollinger Bands indicator, sounded a note of caution to traders and suggested that they “take some profits or hedge a bit.” He said there was no confirmation of a fall yet, but if it happened, hodlers could use the lower levels to buy more.

After Aug. 25’s minor correction, could Bitcoin and altcoins resume their up-move? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin (BTC) broke above the psychological barrier at $50,000 on Aug. 23, but the long wick on the day’s candlestick showed profit-booking at higher levels. The selling continued on Aug. 24 and on Aug. 25, which pulled the price down to the support line of the rising wedge pattern.

BTC/USDT daily chart. Source: TradingView

The bulls are currently defending the support line. If the rebound sustains, the bulls will have another go at the overhead resistance zone of $50,000 to $50,500. If it clears this hurdle, the BTC/USDT pair may rally to the resistance line of the wedge.

A breakout and close above the wedge will suggest strength and could attract further buying. That may clear the path for a rally to $60,000. The rising 20-day exponential moving average (EMA) ($46,014) and the relative strength index (RSI) in the positive zone indicate an advantage to buyers.

This positive view will invalidate if bears sink the price below the 200-day simple moving average (SMA) ($45,977). That may result in a decline to $42,451.67.

ETH/USDT

The bulls pushed Ether (ETH) above the overhead resistance at $3,335 on Aug. 23 and Aug. 24, but they could not sustain the higher levels. This suggests that bears are defending the level aggressively.

ETH/USDT daily chart. Source: TradingView

The ETH/USDT pair dropped to the 20-day EMA ($3,080) on Aug. 25, but the long tail on the candlestick shows buying at lower levels. If the price sustains above the 20-day EMA, the buyers will take another shot at pushing the pair above $3,335.

If they can pull it off, the pair may resume its uptrend, which could reach $3,670 and then $4,000. On the contrary, if the price again turns down from $3,335, a few days of consolidation is possible. The first sign of weakness will be a break and a close below $3,000. If bears sustain the price below this level, the pair could drop to the 200-day SMA ($2,352).

ADA/USDT

Cardano (ADA) witnessed profit-booking near the psychological level at $3 on Aug. 24, but a positive sign is that bulls are not giving up much ground. The long tail on Aug. 24’s and Aug 25’s candlestick suggests accumulation at lower levels.

ADA/USDT daily chart. Source: TradingView

If the price rebounds off the current level or the breakout level at $2.47, it will indicate that the sentiment remains positive and bulls are buying on dips. The bulls will then try to resume the uptrend by pushing the price above $3. If they manage to do that, the ADA/USDT pair may rise to $3.50.

On the other hand, if the price once again turns down from the overhead resistance, the pair may consolidate between $3 and $2.47 for a few days. A break and close below $2.47 could pull the price down to the 20-day EMA ($2.20). The bears will have to sink the price below this support to gain the upper hand.

BNB/USDT

After the strong up-move on Aug. 23, Binance Coin (BNB) made an inside-day candlestick pattern on Aug. 24. This suggests indecision among the bulls and the bears. Currently, the buyers are attempting to resolve the uncertainty in their favor.

BNB/USDT daily chart. Source: TradingView

If bulls push and sustain the price above $509.72, the BNB/USDT pair could start its northward journey toward $600. The rising 20-day EMA ($420) and the RSI in the overbought zone suggest that buyers have the upper hand.

Contrary to this assumption, if the price turns down from $509.72, the pair may drop to the breakout level at $433 and consolidate between these two levels for a few days. A break and close below the 20-day EMA could result in a decline to $385.47 and then to the 200-day SMA ($358).

XRP/USDT

The long wick on XRP’s Aug. 23 candlestick shows that bears are attempting to stall the recovery in the $1.30 to $1.35 zone. This may have led to profit-booking from short-term traders, resulting in a drop to the 20-day EMA ($1.08).

XRP/USDT daily chart. Source: TradingView

The bulls are likely to aggressively defend the breakout level at $1.07. If the price rebounds off this support, the XRP/USDT pair could rise to the downtrend line and above it to $1.35. A breakout and close above this resistance will signal the resumption of the uptrend.

Contrary to this assumption, if the bears sink the price below $1.07, the pair could drop to the 200-day SMA ($0.86). Such a move will suggest that the bullish momentum has weakened and the pair may trade in a range for a few days.

DOGE/USDT

Dogecoin (DOGE) turned down from the downtrend line on Aug. 24 and dropped to the 20-day EMA ($0.28). Although bulls have defended the support, the failure to achieve a strong rebound suggests a lack of aggressive buying.

DOGE/USDT daily chart. Source: TradingView

If bears sink the price below the 20-day EMA, the DOGE/USDT pair could drop to the next support at $0.21. Such a move will suggest that the recent breakout above $0.29 was a bull trap. The pair could then remain range-bound between $0.21 and $0.29 for a few days.

The flattening 20-day EMA and the RSI just above the midpoint also suggest a consolidation in the short term. Conversely, if the price turns up from the current level and rises above the downtrend line, the pair may rally to $0.35. A breakout and close above this resistance could open the gates for an up-move to $0.45.

DOT/USDT

The failure of the bulls to push Polkadot (DOT) above the overhead resistance at $28.60 for the past few days attracted profit-booking on Aug. 24. The price dropped close to the 20-day EMA ($23.84), but the buyers are attempting a rebound.

DOT/USDT daily chart. Source: TradingView

The bulls will now make one more attempt to thrust and sustain the price above the overhead resistance. If they manage to do so, the DOT/USDT pair will complete a V-bottom, which has a pattern target at $46.83.

On the contrary, if the bounce fizzles out and bears sink the price below the 20-day EMA, it will suggest that the bullish momentum has weakened. The pair could then drop to $18 and remain range-bound for a few more days.

SOL/USDT

Solana (SOL) is currently correcting the sharp up-move of the past few days. This suggests that traders are booking profits. The critical support to watch on the downside is the breakout level at $58.38.

SOL/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($59) and the RSI in the overbought territory indicate that bulls have the upper hand. If the price rebounds off $58.38, it will suggest that traders continue to accumulate on dips. The bulls will then make one more attempt to resume the uptrend.

A breakout and close above $82 may start the next leg of the up-move. On the other hand, if the price turns down from $82, the SOL/USDT pair could remain range-bound for a few days. A break and close below $58.38 will suggest that bears are making a strong comeback.

Related: Bitcoin erases BTC price dip but $48.2K is now key to avoid bull trap

UNI/USDT

The long wick on the Uniswap (UNI) candlestick showed that bears continue to defend the overhead resistance at $30 on Aug. 23. That may have attracted profit-booking from short-term traders on Aug. 24, which pulled the price below the moving averages.

UNI/USDT daily chart. Source: TradingView

If bulls fail to sustain the price above the moving averages, the UNI/USDT pair could drop to $23.45. A strong bounce off this level will suggest that traders are buying on dips. That could keep the pair range-bound between $23.45 and $30 for a few more days.

The flat moving averages and the RSI near the midpoint suggest a few days of consolidation. A breakout and close above the $30 to $31.25 overhead resistance zone will signal the start of a new uptrend.

BCH/USDT

Bitcoin Cash (BCH) turned down from the $700 to $714.76 overhead resistance and slipped below the 200-day SMA ($657) on Aug. 24. The bulls are currently attempting to defend the 20-day EMA ($632), which is a positive sign.

BCH/USDT daily chart. Source: TradingView

If the price rebounds off the current level and rises above the 200-day SMA, the BCH/USDT pair could rise to the overhead resistance zone. A breakout and close above this zone could open the doors for a rally to $806.87.

Conversely, if bears sink the price below the 20-day EMA and the $619 support, the pair could witness a deeper correction to $588 and then $550. Such a move will point to a few days of consolidation.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC.

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Kenyan Fintech Player: ‘Banking the Unbanked’ Is the Most Important Use Case for Digital Currencies in Africa

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Kenyan Fintech Player: ‘Banking the Unbanked’ Is the Most Important Use Case for Digital Currencies in Africa

The year 2020 may well go down as the year when blockchain technology and cryptocurrencies, in particular, gained mainstream recognition. The restrictions on movement, as well as the widespread fear of catching a virus, forced many to look for alternative ways of making payments or sending remittances. This search for an alternative inevitably led many to crypto. Although the use of such alternatives to fiat cash continues to grow, many of the intended beneficiaries in places like Africa are still unable to use such digital currencies.

Kenya’s Kotani Pay Addresses Lack of Crypto Access

The lack of smartphones, misinformation about cryptocurrencies, and poor net connectivity are some of the main reasons why the number of digital currency users is not growing as some crypto proponents would have wanted. As a consequence, some players in this space are now working hard to find solutions to help those that presently cannot use digital currencies.

One such player is Kotani Pay, a Kenya-based fintech start-up that is focused on providing a reliable blockchain on-ramp and off-ramp service for users in Africa. Bitcoin.com News recently reached to the start-up’s CMO, Brian Kimotho, to learn more about Kotani’s offering. Below are Kimotho’s written responses to questions sent via WhatsApp.

Bitcoin.com News (BCN): When was Kotani Pay established and why?

Brain Kimotho (BK): Kotani Pay was established in 2020. We built Kotani Pay after realizing for a very long time that the people who were set out to benefit the most from the promise of Blockchain and Web3 technologies had no way of interacting with the services offered. Most of these users don’t have smartphones or an internet connection. They only have feature phones. The most they can do is communicate via texting or making phone calls. Kotani Pay is built with this in mind. To access the service one simply needs to dial the Unstructured Supplementary Service Data (USSD) code. Once dialed, the user is presented with a simple menu where they can make their preferred selection — send money, withdraw…

BCN: You are currently involved in efforts to provide the so-called universal basic income (UBI) to refugees. Can you tell our readers what motivated your company to become involved in this?

BK: Serving the refugees in collaboration with Impact Market, Refugee Integration Organisation and Mission Possible 2030 was in line with our goal of making Web3 technologies accessible to the last mile. In Africa for example, the total number of mobile phone users stands at 700M. Out of these 700 million users, only 260 million have internet-enabled smartphones. Kotani Pay, through projects such as the UBI for refugees, is able to realize its goals for empowering the remaining 440 million people who are using feature phones.

BCN: How many refugees are now benefiting from this UBI initiative?

BK: 2000 with an additional 4000 in the pipeline.

BCN: On your website, you tout Kotani Pay as “Africa’s most reliable blockchain on-ramp and off-ramp service.” In exactly how many countries do you provide this service?

BK: The Kotani Pay USSD service is powered by the Kotani Application Programming Interface (API). With this API, businesses can integrate their processes to our off-ramp service to serve mobile phone (smartphone and feature phone) users in Africa.

BCN: From your perspective, what would you say is the most important use case for digital currencies in Africa?

BK: Banking the unbanked.

BCN: You provide an on-ramp and off-ramp service on a continent where most countries have either banned or imposed some form of restrictions on digital currencies. How are you managing to provide this service and still not violate regulations in countries where you operate?

BK: We are fully compliant with the Payments Services Act and banking regulations in Kenya. We work via banking APIs regulated by the Central Bank of Kenya for user AML/KYC due diligence. Beyond that, we provide the service leveraging stablecoins on the Celo network pegged to the value of the dollar and euro. The stablecoins are backed by other verifiable assets making them less volatile to price fluctuations.

BCN: Countries like Ghana and Nigeria are proceeding with plans to launch central bank digital currencies (CBDC) while many other countries plan to do the same in the near future. In your opinion, are CBDCs something that the crypto industry should be afraid of?

BK: No, CBDCs are not something we should be afraid of. The CBDC use case goes to show the possibilities of what Web3 and Blockchain have to offer. CBDCs present several benefits including low barriers to entry for users, lower cost of minting money as well as low cost of cross-border and interbank transactions.

What are your thoughts on this interview? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Skybridge Capital’s Scaramucci on Crypto Boom: ‘The Institutions Are Not There’

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Skybridge Capital’s Scaramucci on Crypto Boom: ‘The Institutions Are Not There’

scaramucci

Anthony Scaramucci, CEO of Skybridge Capital, a multi-asset class investment firm, says he thinks the institutional investment boom in cryptocurrencies has been greatly exaggerated. In an interview given to Bloomberg last week, Scaramucci stated that most institutions are still not interested in cryptocurrency as an investment and that only 10% are actively investing in crypto.

Anthony Scaramucci Thinks Institutions Are Still Not Big on Crypto

Anthony Scaramucci, CEO of Skybridge Capital, thinks there is still a long way until bitcoin and cryptocurrencies are embraced by institutional investors. In an interview offered to Bloomberg, Scaramucci stated that, according to his experience, only 10% of the institutional world is actively investing in cryptocurrency. While this may be a minority, according to Scaramucci, it’s a minority that has some impact. The Skybridge Capital founder says the situation feels like a “feeding frenzy.”

The investor stated:

The institutions are not there. Anybody who’s telling you there’s institutional adoption into this space is not being totally honest – or they’re seeing something that I’m not seeing.

This line of thinking holds that the whole cryptocurrency bull market has been pushed mostly by retail investors and that when institutions really do enter the crypto space, they will give it a massive boost. However, instruments like ETFs will play a major role in achieving this goal.

Defi and the Future of Institutional Investment

Decentralized finance has been one of the big topics that have driven the cryptocurrency market this year. The ability to transact and access financial services without a middleman is a key feature of the sector. Scaramucci thinks this might attract more institutions into the space in the long run.

But this being as it may, institutions still have reasons to be wary of investing in cryptocurrencies. Some maintain there is no clear regulation in the sector, something that has been criticized by many actors that are currently facing lawsuits in crypto-related cases, like Ripple. This month, Coinbase, one of the leading U.S.-based cryptocurrency exchanges, was stopped in its tracks by the SEC when it intended to launch a crypto-based lending product. The latest Chinese crypto ban also affects the perception that investors have of these instruments.

In any case, there has been an increase in attention to cryptocurrency from big institutional firms like Goldman Sachs, JPMorgan, and Fidelity, among others, that have started offering crypto services to their customers.

What do you think about Anthony Scaramucci’s opinion of institutional investment in cryptocurrency? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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JPMorgan Boss Jamie Dimon: ‘If You Borrow Money to Buy Bitcoin, You’re a Fool’

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JPMorgan Boss Jamie Dimon: ‘If You Borrow Money to Buy Bitcoin, You’re a Fool’

Jamie Dimon, the CEO of one of the biggest financial institutions of the world, JPMorgan, has once again let the world know about his stance on bitcoin and cryptocurrencies. Dimon stated that whoever borrowed money to purchase bitcoin was, in his opinion, a “fool.” However, his personal opinion has not clashed with the fact that JPMorgan is now offering access to six cryptocurrency funds for its customers and even created its own digital ledger token for payments, called JPM Coin.

Jamie Dimon Blasts Cryptocurrencies

JPMorgan’s CEO Jamie Dimon blasted crypto and bitcoin yet again. The JPMorgan executive argued about the real value of cryptocurrencies and his take on the cryptocurrency world in an interview with the Times of India last week. Dimon stated that the latest bull market in cryptocurrencies was created by a lot of liquidity in the system, which then leads to speculation. Dimon declared:

I am not a buyer of bitcoin. I think if you borrow money to buy bitcoin, you’re a fool.

However, Dimon also acknowledged there is the possibility that the cryptocurrency sector could increase its value tenfold in the next years.

Regulation and JPMorgan Offerings

Dimon was also asked about how he believes regulations will affect cryptocurrencies in the future. While he stressed bitcoin was not its main interest, Dimon did state that he believes governments will regulate bitcoin at some point in time. He explained:

It is going to be regulated. Governments regulate just about everything. I don’t know if it’s an asset. I don’t know if it’s foreign exchange. I don’t know if it’s a currency. I don’t know if it’s the securities law. But they’re going to do it.

However, the personal opinions of Dimon about the validity of cryptocurrency and the coming regulation of the cryptocurrency market have not affected JPMorgan’s business moves into crypto. In fact, the company is now more open to cryptocurrencies than it was two or three years ago. In August, the firm informed they would allow its customers to access six cryptocurrency-based investment funds (Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, and Ethereum Classic Trust, and the Osprey Bitcoin Trust).

Also, the company has dipped its toes when it comes to digital currencies. In October 2020, JPMorgan announced the creation of “JPM Coin,” a network that would allow its customers to make instantaneous payments using blockchain technology.

What do you think about Jamie Dimon’s remarks about bitcoin? tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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