Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books. However, many in the crypto community question Binance’s approach, and aren’t fully convinced that they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement, the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings. The company’s initial audit…
- Bitcoin showing strength consolidating after last week’s jump.
- Ethereum looks for support to move higher.
Everyone’s eyes are on Bitcoin. After last week’s massive 42% jump, not only did Bitcoin reclaim 2% market dominance, totaling at 67.5%, it equally brought the total market capitalization of the cryptocurrencies market to $250 billion.
Indeed, this has breathed bullishness into a stagnant, ranging market. The question remains, what Bitcoin’s next major step is: will it break out of the descending channel and signal to the market an incoming uptrend, or retest the lower trendline, indicating bulls are still not ready? In both instances, it would be instructive to wait for the weekly close, whether above or below the trendline, to indicate sentiment. However, make sure to err on the side of prudence, for fakeouts tend to occur in the cryptomarkets.
Ethereum shows strength this week, holding last week’s gains above the descending wedge’s flipped resistance. From a high time frame perspective, waiting for an ETH/USD weekly close can anticipate what price intends to do in the coming week(s). A close above the wedge would be necessary for a bullish case to carry on last week’s momentum, but a more bullish scenario would constitute a close above the $186 range top. Conversely, for a bearish case, ETH/USD would have to close at least below the wedge’s flipped resistance and preferably below the range bottom at $168.
Last week ETH/BTC fell through its supporting trendline at 0.021, indicating buyer exhaustion. This correction found support at 0.0188 and has since been consolidating. Bullish risk-averse traders would find the current entry tempting, especially if the week were to close above support at 0.1888, as this would be an entry at a strong support level after a healthy correction. To note that, however unlikely, sentiment could turn bearish if the weekly close turns out below the trendline support, accompanied by large volume. Stay prudent!