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Weekly Cryptocurrency Recap: Bitcoin and Ethereum Fail to Break Above Resistance

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A few hours before the weekly open Bitcoin’s price crashed.

Bitcoin Recovers, But Fails to Break Above $12,000

The flagship cryptocurrency took a 13.69% nosedive, plugging from a high of $12,154.25 to a low of $10,490 within 30 minutes. The bearish impulse caused the liquidation of over $1 billion worth of BTC futures contracts across multiple crypto derivatives exchanges within the industry.

As Monday, August 3rd, kicked off with Bitcoin trading at $11,080.70, many market participants feared a further downturn. However, it seems like sidelined investors took advantage of the low prices to get back into the market. The spike in demand for the pioneer cryptocurrency pushed it up by 3.63% to an intraday high of $11,483.

This price hurdle was strong enough to reject BTC from advancing further, which triggered a correction that extended over the following day. By 12:00 UTC on August 4th, Bitcoin had retraced 3.99% from the peak, reaching a low of $11,025. A significant number of buy orders were filled around this support level and allowed this cryptocurrency to bounce back up.

Although prices were able to partially recover, a new uptrend began on August 5th. Bitcoin entered a bull rally on this day that sent its price up over 7.30%. Two days later, the bellwether cryptocurrency was taking an aim at the $12,000 resistance zone as its price rose to a high of $11.916.02. This massive supply barrier was able to hold, yet again, causing it to pull back as the week came to an end.

The rejection saw Bitcoin closed on Friday, August 7th, at $11,596.26, approximately 2.40% lower that then weekly high. The price action seen throughout the week of August 3rd provided investors a positive return of $4.65%.

Massive Resistance Rejects Ethereum From Advancing Further

Like Bitcoin, Ethereum also saw its price crash on August 2nd. The downswing was quite significant  as the smart contracts giant plummeted by 21.51%. Its price went from hovering at a high of $415 to a low of $325.75 within a short period. Regardless, Ether was able to quickly rebound and open the week of August 3rd at $372.19.

As speculation mounted around the launch of ETH 2.0’s testnet, the second-largest cryptocurrency by market cap kicked off the week on the right foot. After the weekly open, buy orders began to pile up allowing its price to surge over 8.45%. By August 4th, Ethereum was trading at $403.64, but the launch of the Medalla testnet served as a “sell the news” event.

Indeed, Ether appears to have topped around this price level as a 5.69% correction followed. The $380 support level was able to hold, which sent ETH back up. The next day, this altcoin was able to make a higher high of $408, but some investors decided to realize profits at this price level. The high levels of selling pressure was significant enough that Ethereum entered a downward trend throughout the rest of the week.

By Friday, August 7th, ETH had pulled back over 11% to reach a weekly low of $362.88. As the week came to an end, Ethereum was able to recover some of the losses incurred and closed at $376.18. Investors were able to scratch a weekly return of 2.03% despite the volatile price action seen throughout the week.

Sitting at a Pivotal Point

Although Bitcoin and Ethereum failed to break out throughout the past week, everything is not lost. The top two cryptos by market cap still have significant upside potential when considering the uptrend that some lower-cap coins have entered. Under the premise that the cryptocurrency market is highly correlated, it may be just a matter of time before BTC and ETH rise to new yearly highs.

Regardless, the bearish outlook cannot be omitted yet. Bitcoin appears to be forming a diamond pattern on its 4-hour chart that has a 60% chance of breaking down. If the BTC were to lose the $11,500 support, it could drop towards $9,200. The sell-off would likely bring Ethereum down with it pushing its price close to $300.

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Japanese E-commerce Rakuten Incorporates Bitcoin, Ethereum and Bitcoin Cash to Its Platform

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Rakuten users will be able to shop using Bitcoin, Ethereum, and Bitcoin Cash.

Japanese e-commerce and online retailing company Rakuten Inc (TOKYO: 4755) has added crypto services to its payment platform. According to an announcement through its official webpage, Rakuten users will be able to shop using Bitcoin, Ethereum, and Bitcoin Cash.

The move by Rakuten to adopt cryptocurrencies in its platform is a major plus for the entire crypto market. The firm is reported to have over 95 million registered users according to a report by JPMorgan.

According to the press release, users of Rakuten’s crypto wallet can now exchange the selected digital assets for the firm’s e-money, Rakuten Cash, to charge its Pay app and Point credit card. Moreover, Rakuten has noted that the service will be done at zero fees. Whereby the minimum charge amount is set at 1000 yen and the charge upper limit of up to 100,000 yen per month.

Notably, the firm indicated that one must be a Rakuten registered member to use the service. Besides, one must have a physical trading account for Rakuten wallet. As a result of the new Rakuten crypto services, Rakuten customers can now purchase with crypto from thousands of merchants across Japan that accept Rakuten Pay and Rakuten Point Card.

In a bid to lure more customers into the new crypto services, Rakuten introduced a campaign to promote the services. According to the campaign, “up to 1,000 points will be given by charging Rakuten Cash from crypto-assets.”

Rakuten and Its Bitcoin Adoption

The Rakuten Payment Co. Ltd. was established back in 2019 to develop payment systems for the entire parent company. Some of the notable developments include Rakuten Pay, which is a real store payment, Rakuten Pay that is an app payment, Rakuten Point Card, Rakuten Edy, and Rakuten Check.

Notably, the Rakuten Wallet was conceived around three years ago during the 2017/2018 crypto bull rally. On the other hand, the Rakuten Cash is the online electronic money used by the Rakuten Group.

Although Rakuten has only adopted three crypto assets, most customers are not likely to use Ethereum due to the high fees involved. Bitcoin and Bitcoin Cash are going to be the winners of the deal as they offer cheaper transaction fees. However, Bitcoin Cash with its fast processing speed and low fees is going to be the favorite among most Rakuten customers.

The Rakuten crypto involvement is set to put it at a better vantage point in competitive aspects. Remember digital payments, particularly crypto assets, have gained traction during the ongoing coronavirus pandemic.

The huge exposure of the selected crypto assets by Rakuten to its customers will further fuel the ongoing bull rally. Notably, institutional investors have been largely attributed to the ongoing bull rally that has seen Bitcoin trade at its all-time high almost $60k last week.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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How Lightening Network Is Using Binance Smart Chain to Secure Privacy for DeFi Users

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Lightening Cash is a project that uses zero-knowledge proofs to provide users with an assurance of privacy in their blockchain-based transactions.

Even by the standards of the fast-moving cryptocurrency markets, the rise of decentralized finance has been remarkable. Only one year after hitting the $1 billion milestone, the total value locked in DeFi exceeded $40 million in February this year.

While other platforms are now making headway in propagating their own DeFi ecosystems, the vast majority of that growth has taken place on the Ethereum blockchain. Ethereum often comes under fire for its lack of scalability and high transaction fees, and rightly so.

However, there’s another issue with Ethereum-based DeFi that’s less frequently discussed – privacy. Every single transaction that takes place on Ethereum is recorded publicly. If you give someone your public wallet address, they can find out how much crypto you’re holding.

In the context of DeFi, the issue comes with even bigger problems. Ethereum’s transparency promotes front-running in DeFi. Front-running generally occurs in arbitrage transactions where traders attempt to profit from price differentials across exchanges.

The problem is that once a DEX transaction is broadcast to the network, even before it’s included in a block, it’s possible that another user, or more commonly, a bot, will see the same opportunity. They swoop in, bid a higher gas price so that a miner will include their transaction in a block first, and take the profit away from the trader. The practice is rife, as demonstrated in an August 2020 blog post from programmer Dan Robinson, who told of how his team ended up losing out on $12k worth of profit to a front-running bot.

Therefore, it’s evident that the privacy issue on Ethereum isn’t a trivial problem. Thankfully, at this point in DeFi, crypto innovators are beginning to emerge with solutions, and one such example is Lightening Cash, developed on the fast-growing Binance Smart Chain.

What Is Lightening Cash?

Lightening Cash is a project that uses zero-knowledge proofs to provide users with an assurance of privacy in their blockchain-based transactions. Zero-knowledge proofs, or ZKPs, protect user privacy with a layer of encryption that allows data to be shared between parties without disclosing the actual data itself. This means that the validating nodes on a network can verify a transaction but without having to see or publicly record all of the details of the transaction. It’s the same technology that Zcash uses to ensure privacy.

Lightening Cash is based on the same protocol as Zcash but operates on the Binance Smart Chain (BSC). BSC launched in September 2020 as a means of overcoming the lack of smart contract capabilities on the original Binance Chain. It offers several benefits for applications, including low fees, fast throughput, and compatibility with the Ethereum Virtual Machine.

Lightening Cash operates as a layer through which users can funnel transactions into DeFi protocols running on the BSC via the Lightening Cash user interface. Users pay a small fee in the native LIC token, which is forwarded into the project’s Treasury. The Treasury fund is used as a mechanism to help manage the price of LIC tokens, which is designed with long-term sustainability in mind.

LIC Token

A core challenge with many farmed tokens is that they end up being highly inflationary, which is ultimately not a sustainable source of value. Holders will simply dump the tokens once they reach a high enough value, forcing prices down. Lightening Cash aims to overcome this with a buy-back program.

Fees accrued in the Treasury will be used to buy LIC tokens from Pancake Swap, helping to provide a deflationary effect. This will offset the inflationary pressure that comes with offering LIC as rewards for farming and staking. The project aims for LIC tokens to provide a high APY but ensuring a price level that doesn’t incentivize dumping.

The LIC token will be issued under a fair launch model. Fifty million tokens will be released, with 35% allocated for farming, 33% going towards operations, development, team, and advisers, 12% to a community program, 15% held in reserve, and 5% to providing liquidity on PancakeSwap. Much of the token supply is also subject to an unlocking period, with the reserve supply subject to community governance for release.

The LIC token will be set at an initial listing price of $0.038 on PancakeSwap, meaning the initial market cap is $203,300.

Conclusion

As the first privacy protocol on the Binance Smart Chain, Lightening Cash stands a good chance of gaining adoption by BSC-based applications. However, the project aims to become a blockchain-agnostic protocol, which will provide significant scope for further growth. Given the privacy challenges faced by DeFi users, it seems likely that we can expect to see more from Lightening Cash and other privacy-preserving technologies in the future.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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Dogecoin Developers Add New Features

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Dogecoin leveraged on the crypto bull run of earlier this year as its price-performance pushed it into the top 10 ranking of crypto assets by market cap and its price peaked at new all-time highs.

Dogecoin (DOGE) might have been in the news lately for its incredible price performance and the new level of publicity it is enjoying amongst crypto enthusiasts, however, emerging new details of the features appear to show that the developers of the coin are working towards making the hype surrounding the asset as true as it comes. According to an announcement made yesterday, a new version of the protocol’s core has been developed which would lead to the improvements of its “synchronization speed and reduced default mempool expiry time.”

This means that Dogecoin would have a significantly improved speed when it comes to uploading new blocks as the integrity checks that were hitherto performed previously have been removed. Previously, when a new block is uploaded on DOGE, an expensive integrity check is carried out on the block whenever it is being sent to a new node. Not only that, but the new development would also see to the reduction of time that transactions are cached in the mempool from 336 hours to 24 hours.

The recently improved exposure and the rise in the price of the asset encouraged the developers to work on improving its core functionalities. According to Ross Nicoll, who is the lead maintainer of the asset, noted that “people say it’s a joke coin but we’re very careful to take care of the code. When it took off there was a resurgence in attention and we want to keep the currency operational.” Since its creation in 2013, the crypto coin has been the butt of many jokes in the industry, however, the attention of Elon Musk plus other notable elite artists like Snoop Dogg has brought it into the limelight.

Interestingly, Dogecoin leveraged on the crypto bull run of earlier this year as its price-performance pushed it into the top 10 ranking of crypto assets by market cap and its price peaked at new all-time highs. The digital coin has however corrected but its market cap is still well over $6 billion and it is still in the reckoning of crypto enthusiasts.

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Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.



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