Highlights on DataDash – Bitcoin breaks back above $4,000 & OTC volume remains steady

Today we will discuss a strong increase in Bitcoin above the moving average for 50 days to $ 4,000. Also this week, Mimblewimble technology was applied, and despite its ridiculous name, this event carries with it some technological progress. In conclusion, we consider the market for OTC cryptocurrency transactions (OTC).

Over the last hour (at the time of video recording), Bitcoin grew by 5.3%, and after it altcoins began to grow. I do not know if a fundamental setup is being formed for long-term growth, but I would not argue in favor of this. However, in the short term, growth may continue until the $ 5000 target we have already noted. Market capitalization is also growing and approaching the resistance of December 2018.

I think that if capitalization continues to grow, it will slow down closer to $ 200 billion, I don’t, that the market will be able to pass this level so easily. This is undoubtedly good growth, but the market must be strong enough to maintain the levels reached, and this, I believe, will cause problems this time. Bitcoin dominance is kept at 50%.

Most likely, this support will eventually be broken, as with the growth of the market, the share of altcoins on it grows. It is noteworthy that currently, only large-cap altcoins (ETH / XRP) are growing, while small-cap altcoins do not follow the general trend. It is worthwhile to focus your attention on supporting the dominance of BTC, since during its breakdown the altcoins will grow faster than the market.

The price of Bitcoin went through 2 levels of oblique resistance and has now broken out above the moving average for 50 days and continues to stay above it for several days already.

I’m still not sure that Bitcoin is expecting long-term growth, but it’s nice to see the absence of any serious resistance to the moving average over 100 days. However, I remain cautious. The best step in growth to $ 5,000 will be the redistribution of your portfolio from small altcoins, as with the general growth of the market, they tend to move faster. Time to build your long-term tactic. Only a very high volume of purchases, higher than with a recent increase, can make me believe in continuous growth. However, to be honest, I don’t think it will happen. It looks more realistic growth to the level of resistance on the moving average per 100 days, followed by a decrease.

Ethereum continues to test the moving average for 100 days, and I think he will be able to break through this resistance.

After that, the price will go to the test of the previous support level at $ 200 and in the subsequent 200-day moving average.

First cryptocurrency using Mimblewimble technology launched

Recently, the Beam project team announced the introduction of the Mimblewimble technology, which first appeared in the Bitcoin chat, and named after a spell from the Harry Potter universe. This technology contains a number of useful features. As a cryptocurrency, Bitcoin is not perfect and Mimblewimble aims to solve its existing problems.

Many users believe that Bitcoin is confidential, but this is not the case, from which the problem of coin interchangeability arises. Mimblewimble allows users to independently determine what information they want to disclose for general access. This will be a crucial function for cryptocurrency in the future, because first of all we want to see a digital analogue of cash, and cash transactions are confidential. To some extent, this is similar to Monero with its private keys, which allow participants in a transaction to obtain information about it after it has been held. This is very important, for example, for resolving disputes, when the user can provide the necessary third-party data about the transaction, which will not be available in the general registry.

Mimblewimble also solves the interchangeability problem that has led to the Coinbase transaction phenomenon, in which users receive completely new coins without a history of suspicious transactions, such as money laundering. At the moment, this is the only way to maintain your own confidentiality when conducting transactions, and even it is not perfect. I’m sure that confidentiality Mimblewimble will play in favor of integrating cryptocurrency in emerging markets, as we have already seen a similar example with Dash in Venezuela.

The average size of Circle OTC transactions in 2018 was $ 2 million.


This is an amazing number even for the OTC market. Considering that the average is not represented, and the fact that some brokers make it possible to conduct transactions of just a few thousand dollars, it is fair to believe that transactions in the past year have been in the tens and hundreds of millions of dollars. Personally, I had an interesting experience with people it is good to see from this area that large financial institutions use the over-the-counter market as an entry point. Thus, we see that the owners of large capital in offshores, as well as hedge funds are interested in the cryptocurrency market.

The volume of funds going through OTC deals is higher than on exchanges with leverage, such as BitMEX, and this is despite the fact that there are much fewer participants in the over-the-counter market.

This article is a direct translation from this source

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Vladyslav Skakun

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