The Beginner’s Guide to Bitcoin Trading


Lots of people have entered the Bitcoin space because they’ve heard about the various ascents and declines in its value relative to other currencies like the Dollar and Euro. This post attempts to give a basic primer to newcomers who are looking to begin learning about Bitcoin trading.

Important Disclaimer: Bitcoin can be highly volatile and subject to significant price swings. You should trade Bitcoin at your own risk. Never trade more than you can afford or are willing to lose. This post is not investment advice nor should it be utilize it as such. You are the only one responsible for any money you may/may not gain and all the money that you may/may not lose, no one else is. By reading on you confirm that you are in 100% agreement with the above. All good? Ok, let’s roll.

Selecting a Trading Platform

There are several trading platforms available today where you can begin trading Bitcoin, such as Coinbase ExchangeBitstampitBit or Bitfinex. For the purposes of this post, we are going to use Bitstamp. If you don’t have a Bitstamp account, you can sign-up here. When you create the account, you will need to provide some basic information to confirm your identity. This is standard practice across the Bitcoin space. Bitcoin companies have to comply with what are known as “KYC/AML” regulations, Know Your Customer and Anti-Money Laundering regulations. From there, you can fund your Bitstamp account with the amount of money you are wanting to begin trading Bitcoin with.

New Vocabulary Words

Screenshot 2015-06-04 07.57.19

Alright, so your account is funded and you’re ready to trade some Bitcoin. Wait right there – before you begin trading any Bitcoin, it’s important to start to familiarize yourself with some basic trading terms you are no doubt going to be seeing at some point as you endeavor ahead.

Orders: Bitcoin trading platforms are comprised of buyers and sellers of Bitcoin. Buyers and Sellers meet each other and interact around what are known as Orders. These are buys and sells that have been submitted to the trading exchange by these aforementioned users (note: users aren’t just humans, they can be automated trading robots), buying and selling Bitcoin. Open orders are orders that have not been completed. It’s important to note that just because an order is “open” does not mean it will be completed (also known as “filled”). Lastly, just because an order is open does not mean that it will be completely filled. Sometimes, orders are “partially filled” at different prices. Closed orders on the other hand, are orders that have been completely filled.

Bid and Ask: Orders are composed of “Bid” or “Ask” prices. A bid price is the amount as which a buyer (again, not always human) wants to purchase Bitcoin at. An ask price, on the other hand, is the amount at which a seller wants to redeem Bitcoin at. Trading platforms, like Bitstamp, are platforms that match these buyers and sellers together to fill and complete open orders.

Reading The Chart

Screenshot 2015-06-04 08.27.22

Many traders have their own style of buying and selling Bitcoin. Opinions about how you should orient your trading style are about as numerous as the amount of traders. That said, it is this post’s opinion that as a Beginner, your trading should always center around reading the chart. This is the chart displaying the trend of the Bitcoin price over various periods of time.

You, as a trader, can customize the date range for which you are viewing a chart. On Bitstamp, this can be done in the top-right corner of the chart. A good initial perspective to view a chart as a beginner is “1d” which means you want to see the price of Bitcoin on the chart, by day – one day at a time.

You no doubt at this point have probably noticed the weird looking bars that are red and green on the chart. These are called candlesticks. This is the most popular chart-type traders use. If you’d like to see other chart-types, simply select from the “Type” drop-down in the top-right corner of your chart. For the purposes of this post, we will continue with keeping the chart as is, as a candlestick chart.


First, recall in this post that we set the time range on our chart to 1 day. Therefore, each candlestick represents one day of Bitcoin price action. This is called a “tick”. Each day is one tick on the chart. A tick time span will change based on the time interval you are viewing a chart at. When you are looking at a chart you are also looking at a “ticker.”

Next, on each candlestick you will also see that there is a thin line (kind of like a “wick” in a candle). The top of the line represents the highest the Bitcoin price was on that day. Conversely, the bottom of the line represents the lowest the Bitcoin price was on that day.

Another characteristic you will notice on each candlestick is a vertical rectangle that is either solid or empty on the inside. The ones that are empty on the inside are green and the ones that are solid on the inside are red. On a green candlestick, the bottom of the rectangle indicates the price of Bitcoin at the beginning of the tick and the top of the rectangle indicates the price at the top of the tick – it is green and empty on the inside because the price went up on that tick. Conversely, in a red candlestick, the top of the rectangle indicates the price of Bitcoin at the beginning of the tick and the bottom of the rectangle indicates the price at the end of the tick – it is red and solid on the inside because the price went down on that tick.

Candlesticks are useful because they give you, the trader, a full and complete perspective of what happened with the Bitcoin price for each tick during the time frame you are analyzing.

Technical Analysis

Technical analysis is a technique traders employ, in which they analyze historical price movements to identify patterns that may indicate a future price pattern that can be used as part of a trading strategy. There are many different technical analysis techniques, in this post we will just highlight a few of the most popular ones.

On Bitstamp, in the Chart section of the Tradeview, you can choose “Select Tool” to in effect, “draw” on top of the chart you are viewing. We are going to focus on a basic tool for beginners, the “Line” tool.

Using the Line tool, let’s try to identify some trends. On any given day Bitcoin is going be in an “upward trend” or “downward trend” – we’ll use the Line tool to identify “trading ranges” and “price patterns” so that we can try to determine future price action.

Here is an example that we’ve drawn on the Bitstamp 1-Day Ticker, that started in Mid-April and ended right before the beginning of June:

Screenshot 2015-06-04 12.08.11

To recreate this, make sure that the Bitstamp Chart is set to “1d” on the time frame, and zoom out on the chart so you can see “feb” to “jun” on the y-axis of the chart. The line tool can then be used to draw a line across the top of the candlesticks to establish the top of the trading range and upward trend. You can then draw a second line across the bottom of the candlesticks to establish the bottom of the trading range in this upward trend.

Some traders will disagree, but as a general rule, to establish a trend line, you should look for the tops and bottoms of 3 candlestick wicks touching your line, with no more than one candlestick wick poking through the line. The points at which the candlestick wicks are touching the top trend line are places where traders refer to Bitcoin finding “resistance” – where Bitcoin’s price seems to be peaking and pivoting back down as it trends. Now, go ahead and look for the bottoms of 3 candlestick wicks to establish your bottom trend line (again, with no more than one wick poking through the line). The points at which the candlestick wicks are touching the bottom trend line are places where traders refer to Bitcoin finding “support” – where Bitcoin’s price seems to be bottoming out and pivoting back up as it trends.

You should now have established a trading range on your chart, where you can see the price of Bitcoin going up and down in a clearly defined range. The trading strategy most beginning traders will employ here, is to buy Bitcoin at the bottom of the trading range, and sell Bitcoin at the top of the trading range and wait for it to bottom out in the range again before buying back in.

Note on the right side of the chart we’ve created, that in June, the wick violates our trend line, and then the very next day the entire candle falls out of our trading range. This is called a “sell indicator” – that Bitcoin is not going to come back into our trading range and we should consider staying in cash (not trading) until we can identify what the new trend is, a downward trend, for example. Conversely, if Bitcoin had passed through our top trend line and done the opposite of what we observed in the chart, this would have been called a “breakout” – a sign that we should hold until we observe the price pivot out of the breakout and start to head back down (usually confirmed within 1-2 ticks, assuming we’re still looking at this 1d chart).

Downward trends are just like upward trends except they reflect a falling price action over time instead of a rising price action like in the above example. You can still trade within a downward trend because just like in an upward trend, we can look to buy as Bitcoin within the trading range as it finds its support, and sell when it finds its resistance, even though over time the price may be falling (each subsequent resistant point being lower than the previous one over time).

When establishing trend lines it’s important to note that we might not always have symmetrical trend lines. For example, observe the following chart:

Screenshot 2015-06-04 12.39.04

This is called a descending triangle. It means that the price trend is falling over time and entering a narrower and narrower trading range as it goes.

The goal in technical analysis for a beginner trader should always be to identify support and resistance levels so that ranges can be established. In this particular example it would probably be best to wait to see if the price breaks out or collapses (like it ends up doing), before opening a position. There are also several common price patterns that should also be sought after that can also be used to work towards determining future price action. These are:

  • Double Top Pattern
  • Triple Top Pattern
  • Double Bottom Pattern
  • Triple Bottom Pattern
  • Head and Shoulders Pattern
  • Inverse Head and Shoulders Pattern

We won’t cover these patterns in this post, but here’s a great article that does. Beginning traders should look for these patterns in their technical analysis.

Trading Bitcoin

Wow, all this talk so far and no trading. Don’t worry, we’re getting there – if you’ve read this far, you already know more than a lot of people that have bought Bitcoin over the past year, or ever, for that matter. That said, we’re almost done with this post.

When you buy Bitcoin, you can say that you are “opening a position at ‘X’ price.” As long as you are holding Bitcoin, you can say that you have a “position.” Once you sell your Bitcoin, you can say that you have “closed your position at ‘Y’ price.” X & Y, of course, being the prices you bought in and sold at.

Now, assuming you’ve funded your account and you’re ready to trade, There are a few rules we go by that we would like to share with you in case helpful:

  • Never buy Bitcoin at Instant/Market, always use Limit Orders. Limit Orders tell the trading platform to only fill an order as long as Bitcoin is above a certain price. Even if you want to buy at the current market price, look it up, and use that as your limit. This protects you from having your order filled in the middle of any unexpected freak price swing which could result in you losing money.
  • Immediately set Stop Orders after creating Limit Orders. Stop Orders tell the trading platform to automatically sell your Bitcoin if the price of it falls below a certain amount. We usually calculate our sell price to be approx. 3% below the price we are buying Bitcoin at. This means, that as soon as Bitcoin falls below our sell price our position will automatically try to close itself. This is super-important because it helps protect from catastrophic price swings to minimize our losses.
  • Never Dollar Cost Average Down. Some people when they lose money on Bitcoin, will immediately as a knee-jerk reaction, buy more at the lower price to lower their breakeven point. This is bad bad bad. Bad. We have never observed this to be a winning strategy over time.
  • Don’t Trade the News, Use Technical Analysis.

These are four of the five most important rules we look to.

The final rule deserves its own section.

Always keep track of your gains and losses over time. One of the best way to do this is to use LibraTax for Individuals. You might have noticed the word “Tax” in the name, but this won’t be the primary use case for what we’re signing up for at the moment. This is because you can use LibraTax import your trading activity from almost any major trading platform or exchange to have quick snapshots of your gains and losses over time. You can also use it anonymously and it’s free to sign-up.

Additionally, you can keep keep notes for each transaction that help you chronicle your strategy over time. It’s always good to regularly review your trades to identify positive patterns in your technical analysis that led to gains, as well as to identify incorrect assertions or charting mistakes as well. Some traders also notate their emotion/mood at the time trades were entered as well.

While this beginner’s guide is by no means comprehensive, we hope it has been helpful in determining what path you would like to take next in your upcoming trading adventures. If you’d like to connect with other Bitcoin traders to ask questions and learn more, consider checking out the Whale Club – it’s a great place to start.

May the winds of upward trends always be at your back! 🙂

Steve Wozniak had $70,000 in bitcoin stolen after falling for a simple, yet perfect, scam

Will you be smarter than the Apple co-founder?

Getty Images
Apple co-founder Steve Wozniak lost seven bitcoins, equivalent to $70,000 at today’s rates.



Steve Wozniak, the co-founder of Apple AAPL, -1.75% who is widely considered to be a tech genius, made a rudimentary and expensive mistake recently.

“I had seven bitcoins stolen from me through fraud,” Wozniak said at the Times’ Global Business Summit on Monday. “Somebody bought them from me online through a credit card and they cancelled the credit card payment. It was that easy. And it was from a stolen credit card number so you can never get it back.”

With bitcoin BTC, +2.21%  currently valued at $10,000, the move lost him the equivalent of $70,000 (or $140,000 at bitcoin’s peak value of $20,000).

His mistake is far too easy to do, said Joe Blackburn, a cryptocurrency entrepreneur and head adviser at Cryptohunt, a blockchain-based geolocational treasure hunting game. “There is so much that can go wrong,” he said. “If this guy scammed Steve Wozniak out of 70 grand who knows how much he has made off of other people?”

That is why it is important to take a number of security measures in the crypto world, especially when dealing with large volumes of money.

Store your cryptocurrency offline

A good way to secure your bitcoins or other forms of cryptocurrency is to get them off of exchanges and off the internet. This can be done by generating a public bitcoin address which is a long and unique set of numbers and letters used to send bitcoin, and a private key, a corresponding set of numbers and letters used to send your bitcoins to anyone else.

The private key, or PIN, is what gives your bitcoin its value, and is best kept in a physical wallet or at the bottom of your sock drawer or anywhere else it will be safe from water damage, like a safe deposit box.

Digital platforms like Coinbase don’t give users a bitcoin PIN, so bitcoin holders can export the currency to a wallet and extract the PIN or send it to an address generated by a site like They can also use a hard wallet like a Ledger Wallet, which connects to the computer by USB.

Only buy and sell on trusted sources

Storing your bitcoin on a secure device and using two-factor authentication will make it more secure from hackers, but won’t protect you from scams like the one Wozniak fell victim to necessarily.

Blackburn said the only way to remain safe while selling and buying bitcoin is to do so through trusted transfers and exchanges and never opt for what is called an “over the counter” trade like what Wozniak apparently attempted to do.

Here’s why bitcoin might be much easier to regulate than cash

“You should never make a deal over the phone with somebody and put yourself in a position to lose that kind of money,” he said.

Cryptocurrencies are not FDIC-insured like banks and has been called the “Wild West” of finance by U.S. regulators, so there is no recourse if someone takes off with your money. Coinbase, or Coinmama are all more-established platforms and all three accept credit card, so simply plug in the amount you want to purchase and your information to exchange dollars for cryptocurrency.

Of course, in an era of digital currency and increasingly sophisticated hacking, nowhere is 100% safe and the more secure a platform is, the longer a transaction can take.

Use two-factor authentication via web and phone

It’s important to use two-factor authentication to secure everything from your email account to your Twitter, and cryptocurrency is no different. If you are using a platform like Coinbase to send or hold cryptocurrency, be sure to enable two-factor authentication. That means when you log in, you will be prompted to enter a unique code sent to your phone or email to verify your identity. Without this safeguard, your money is at high risk of being hacked.

It’s also important to take note of other hacking efforts, said David Johnson, chief executive officer of cryptocurrency startup Latium. This includes phishing, where hackers pose as legitimate websites to steal user information. That could mean using an email to route a user to a site like sounding like Coinbase with a letter missing instead of the real site

“For every legitimate business online, there are probably five scammers out there trying to act like they are someone they are not,” Johnson said.

China’s Crypto Exchanges Are Thriving Again

It began like this: In January 2017, officials from the People’s Bank of China stepped into the offices of the largest crypto exchanges in the country and sat down with their executives.

From the financial regulator’s Shanghai and Beijing bureaus, the officials told the exchanges at the time they were interested in identifying whether anti-money laundering and capital control mandates were being met.

But according to Robin Zhu, chief operating officer at Huobi, the regulators had an ulterior motive that January day.

“The regulator wanted to grab a big picture of how significant cryptocurrency trading was in China – how does bitcoin work; where does the money come from; where does it go to; how do people make and lose money?” Zhu said.

The PBoC also requested information on the exchange’s trading volume and user numbers. In addition to the platform’s data, Huobi had been regularly submitting information and reports about worldwide government policy in an effort to help the PBoC understand the industry.

Zhu definitely thought something was up. To him, it seemed like the PBoC was gathering information in an order to create a framework for regulating the industry, something many exchanges wouldn’t have necessarily been worried about.

But then September came and with it the announcement that the PBoC was banning initial coin offerings (ICOs) and shutting down domestic fiat-to-crypto order book trading.

It seems the inquiries paved the way for the ultimate clampdown, one that severely affected cryptocurrency exchanges in the country.

In a previous interview with CoinDesk, Huobi’s founder and CEO Leo Li reported trading volumes followed suit. On November 1, 2017, these figures were just 5 percent of what they were on Sept. 15, the last day before the close of order-book trading.

Yet, not to be deterred, exchanges such as Huobi have continued to thrive, finding new ways to grow their business.

Zhu told CoinDesk:

“Whatever the policy may be, we will comply with the rules and are here to say. The [bitcoin] trend is irresistible.”

Westward and eastward expansion

In fact, two of China’s largest exchanges at the time, Huobi and OKCoin, already have offerings that again rank within the top 10 in the world by trading volume – Huobi Pro and OKEx, two platforms that now trade cryptocurrencies only.

And Zhu told CoinDesk that Huobi Group has more than doubled its staff to over 400 since September, signaling a strong commitment even facing a tightened regulatory landscape.

“The shift to over-the-counter trading is an unexpected pivot to us. We had never anticipated that to be one of our business strategies,” said Zhu.

But until some of the pressure is lifted, Huobi is proceeding with an aggressive expansion plan.

Over the past few months, the exchange has opened offices in Hong Kong, Singapore, South Korea and the U.S.

Through partnerships with Japan’s SBI Group and an unnamed partner in South Korea, Huobi is expecting its new exchanges in those countries to be running by March of this year. And in San Francisco, the company’s new office is focusing on research and fostering blockchain startups, but Huobi has also employed compliance experts there as well, hinting at a possible crypto service launch in the U.S. too.

“Once we have fully understood the legal issue in the U.S., opening a new exchange remains to be the next phase of the plan,” Zhu said.

While Zhu claimed that opening up operations overseas has always been a part of Huobi’s long-term strategy, the PBoC’s actions undoubtedly forced the platform to expedite its pivot.

All in all, the pivot has been good to Huobi, which is already seeing a more diverse user base, according to Zhu. For instance, Huobi Pro currently has about 3 million users and less than half of them are from mainland China today.

Loyalty, and revenue, token

Yet, Huobi is still focused on adding services for its existing user base.

Toward that goal, Huobi even launched its own token, HT, which runs on the ethereum blockchain, as a way to create user loyalty (and bring in some additional revenue).

Instead of following the ICO model that most startups do, whereby tokens are sold to interested investors, Huobi is giving the tokens away as a free gift to users that purchase service fee packages on its platform.

Over the course of 14 days, the announcement of the HT tokens resulted in investors rushing to buy some $300 million as pre-paid service fees, which Huobi Pro is able to collect in advance.

Following the launch of its own token, Huobi Pro announced a new exchange named HADAX, which allows investors to vote with HT on which new cryptocurrency assets they want listed for trading on the platform.

“We can’t evaluate every new cryptocurrency because there are simply too many of them,” Zhu explained. “HADAX gives investors the choice to vote for tokens they believe are worth trading.”

According to Huobi’s data, as of Feb. 24, the HADAX platform has collected 8.5 million HT from 104,308 users who have cast a total of 85 million votes for 75 different crypto assets.

And with this, Zhu said:

“In the long term, we think crypto-to-crypto trading has more potential than fiat currencies because of the large number of trading choices that can be available.”

The rise of Binance

But the PBoC’s ruling didn’t only add hurdles, it also seemed to lift up a new crypto exchange which has a significant connection to the country.

Binance was launched in July of last year (just two months prior to the PBoC’s ruling) by former top executives from OKCoin, Zhao Changpeng and He Yi. At the time, Binance also disclosed that its first round of funding came from two Chinese venture capital firms – Blackhole and Funcity.

Yet, because its base was outside of mainland China, Binance was in the right place at the right time. When uncertainty prevailed in the domestic market, Chinese investors began withdrawing crypto assets and shifting them onto overseas platforms, according to Zhu.

He said:

“The timing was perfect for Binance.”

Six months after its launch, Binance has now grown into one of the top cryptocurrency exchanges, having seen $2 billion in trading activity in the past 24 hours, according to CoinMarketCap.

“Although Huobi already launched Huobi Pro at the time, we didn’t have as many tokens available for trading as Binance did,” Zhu said, adding that the service is now recording more than $1 billion in daily trading volume.

And even though Binance has previously announced it would limit the access for users from inside China, Zhu said, “One can always surf the internet ‘scientifically'” – referring to the use of Virtual Private Networks (VPNs), which mask user’s IP addresses.

Zhu continued:

“If you have assets in an exchange and now you are prohibited from accessing it through a normal process, you definitely will rack your brain to get in there.”

BlackRock: Crypto Use Could Grow As Market Matures

Global investment management company BlackRock says it envisions a more pervasive role for cryptocurrencies in the future, and that blockchain has promise but it is not without obstacles.

The positive, yet cautious remarks were part of the firm’s Global Weekly Commentary published on Monday by global chief investment strategist Richard Turnill.

“We see cryptocurrencies potentially becoming more widely used in the future as the market matures,” the commentary reads. “Yet for now we believe they should only be considered by those who can stomach potentially complete losses. Similarly, blockchain needs to overcome significant hurdles to reach its promising future.”

Though cryptocurrencies have promise, they remain too volatile, unregulated and risky to be integrated into mainstream investment portfolios right now, Turnhill wrote, explaining:

“The volatility of the cryptocurrencies makes the gyrations in the U.S. equity market during the global financial crisis almost look placid.”

Likewise, the commentary acknowledged blockchain’s “disruptive potential” for industries “from logistics and pharmaceuticals to financial service,” but said its adoption would not be seamless and must involve regulators and central bankers.

“Take the financial industry,” Turnill explained, noting that “a blockchain-based, single shared financial database could eliminate inefficiencies and risks associated with human processes, but adoption at scale would require a massive shift in software development and a well-constructed maintenance model.”

This is not the first time BlackRock or Turnill have chimed in on the crypto conversation.

Turnill previously called cryptocurrency markets “scary” and a bubble, and argued that there is no way to assess a “fair value” for bitcoin or any other coins.

BlackRock CEO Larry Fink struck a different tone last fall, however, and endorsed the potential of cryptocurrencies, calling himself “a big believer” in their prospects.

BlackRock’s commentary suggests it is unlikely to move on cryptocurrency soon, and it has already previously dismissed the idea of a bitcoin exchange-traded fund. Nonetheless, its future actions remain to be seen. “The market is evolving,” Turnill said.

Blackrock headquarters image via Shutterstock

Bull Return? Bitcoin Eyes $11K After Upside Break

As bullish indicators strengthen, bitcoin now looks set to extend gains to $11,000 or higher, chart analysis indicates.

Having defended $9,300 over the weekend amid low volumes, the cryptocurrency picked up bids and rose to a high of $10,443 yesterday, according to CoinDesk’s Bitcoin Price Index (BPI). The uptick was backed by a 28 percent rise in trading volumes, as per CoinMarketCap.

A high volume break above key psychological resistance indicates strong hands are at play, so it’s not surprising that the price is on the up. As of writing, bitcoin (BTC) is trading at $10,707, having clocked a session high of $10,714.47 earlier today.

Activity in the individual markets reveals that investors continue to use tether to accumulate bitcoins. Trading volume in BTC/USDT (bitcoin-tether exchange rate) on OKEx has gone up by 6.96 percent in the last 24 hours. Meanwhile, U.S. dollar trading volume on Bitfinex (BTC/USD) has increased by 6.61 percent.

The cryptocurrency is up 14 percent from the lows seen over the weekend and has gained almost 12 percent in the last 24 hours, according to CoinMarketCap.

Looking ahead, the cryptocurrency looks set to extend gains to the 10-week moving average (MA) of $11,385 in the next 24 hours.

1-hour chart

The above chart (prices as per Bitfinex) shows:

  • Bullish continuation pattern: the upside break of the sideways channel signals continuation of the rally from the low of $9,280 seen over the weekend. Further, the upside break is backed by an uptick in volumes. So, BTC could extend the rally to $11,000, according to measured height method.
  • The relative strength index (RSI) shows overbought conditions, thus BTC may consolidate over the next couple of hours before extending the rally.

Daily chart

  • The daily chart shows BTC could be creating a bullish reversal pattern known as an inverse head-and-shoulders.
  • The neckline resistance of the inverse head-and-shoulders pattern is seen at $11,704. Meanwhile, the descending trendline (drawn from the Dec. 17 high and Jan. 6 high) resistance is located around $11,930 today and is seen sloping downwards to $11,650 by the weekend.
  • A daily close (as per UTC) above the trendline would signal a long-term bullish reversal.
  • A convincing move above the trendline resistance would push the weekly RSI above the key resistance of 53.00, signaling a long-term bullish trend revival.


  • Bitcoin looks set to test $11,000 today and could extend gains to $11,385 (weekly 10-MA). A violation there would shift attention to key resistance levels: the inverse head-and-shoulders neckline and the descending trendline.
  • A daily close above the descending trendline would allow for a stronger rally to $17,400 (inverse head and shoulders breakout target as per the measured height method).
  • Bearish scenario: Rejection at the weekly 10-MA, followed by a quick drop below $9,280 (Feb. 25 low) would add credence to the bearish weekly RSI and trigger a sell-off to $8,000-$7,800.

Bitcoin Cash Gains on 38% Rise in Trading Volume

Bitcoin cash is on the rise amid rising volumes, but is still within a bearish falling-channel pattern for now, the price charts indicate.

As of writing, the world’s fourth-largest cryptocurrency by market capitalization is changing hands at $1,281, having appreciated by over 8 percent in the last 24 hours, as per CoinMarketCap data.

With trading volumes up by 38 percent, the recovery from the Sunday’s low of $1,143 looks sustainable. However, BCH is still down 22 percent from its Feb. 18 high of $1,641, and it’s too early to say whether the cryptocurrency has resumed the uptrend from the Feb. 6 low of $764.

Price chart analysis also indicates BCH is stuck in a bearish falling-channel pattern characterized by lower highs and lower lows.

Daily chart

The above chart (prices as per Bitfinex) shows:

  • The recovery from the Feb. 6 low of $758 ran into offers around the head-and-shoulders neckline resistance (former support) 10 days ago. The subsequent sell-off to $1,129 on Saturday reinforced the bearish view.
  • The 50-day moving average (MA) and 100-day MA bearish crossover (short-term average cuts long-term average from above) also favors the bears.


A daily close (as per UTC) above the falling channel resistance (currently seen at $1,520) would signal the rally from the Feb. 6 low has resumed. BCH could then revisit $2,000 (psychological resistance) and $2,110 (Jan. 20 high).

On the downside, a daily close (as per UTC) below $1,129 (Saturday’s low) would establish lower highs and lower lows pattern inside a bigger falling channel, and would shift attention to $1,000. A violation there would expose the Feb. 6 low of $758.

Candlesticks image via Shutterstock

Bitcoin Brushes $11K as Bull Case Strengthens

Having tested $11,000 this morning, bitcoin (BTC) is now trading roughly sideways for the month, but could still enter March on a positive note.

CoinDesk’s Bitcoin Price Index (BPI) clocked a seven-day high of $11,044 at 06:30 UTC and was last seen around $10,610. Due to the retreat from the intra-day high, the cryptocurrency is now trading largely unchanged on a 24-hour basis, according to data source CoinMarketCap.

With BTC closing last month at $10,221, the cryptocurrency is on track to close the current month with only marginal gains, unless the bulls make progress.

In context, though, the performance is impressive if we take into account the fact that bitcoin had dropped to three-month lows below $6,000 on Feb. 6. However, the “V”-shaped recovery looks to have run out of steam around the $11,000 mark for the second time in seven days.

Further, daily trading volume has averaged around $7.73 billion from Feb. 7 to date, compared to a January average of $13.42 billion, as per CoinMarketCap. The drop in the daily average trading volume during the recovery period could be an indication of a lack of confidence among investors about the sustainability of the corrective rally.

That said, volumes will likely rise if BTC sees longer-term bullish reversal via a break above the confluence of the inverse head-and-shoulders neckline and the descending trendline resistance.

Daily chart

  • The descending trendline is seen converging with the neckline resistance at $11,660 by Sunday.
  • A daily close (as per UTC) above the same would confirm a bearish-to-bullish trend change and open doors for a rally to $17,400.

Meanwhile, the odds of the pair completing the inverse head-and-shoulders pattern would drop if bitcoin closes (as per UTC) below the downward sloping (bearish biased) 50-day MA, currently seen at $10,512.

Moreover, the pullback from the intra-day highs above $11,000 could be attributed to the bearish price-relative strength index (RSI) divergence seen on the hourly chart below.

1-hour chart

The above chart (prices as per Bitfinex) also shows a bullish 50-hour MA, 100-hour MA crossover and a bullish 50-hour MA and 200-hour MA crossover. So, despite the bearish price RSI divergence, the downside will likely be capped around the upward sloping 50-hour MA.


  • A rebound from the 50-hour MA and a break above $11,065 (intra-day high) could yield a rally to the 10-week MA of $11,366. A violation there would expose the inverse head-and-shoulders neckline resistance and the trendline resistance seen today around $11,675 and $11,825, respectively.
  • A close today below the downward sloping 50-day MA of $10,512 would allow a re-test of the Feb. 25 low of $9,280.
  • Meanwhile, a break below $9,280.4 would signal the corrective rally from the Feb. 6 lows below $6,000 has ended and would open up downside towards the $6,000 mark.

Class Actions Mount as Coincheck Lingers Over Crypto Heist Refunds

Coincheck, the Japanese cryptocurrency exchange that saw major losses in a recent hack, is reportedly being hit by another lawsuit demanding refund of cryptocurrency assets.

According to Japanese media outlet Sankei, an additional 132 investors have joined a class action suit filed with the Tokyo District Court on Feb. 27 that seeks a refund of about 228 million yen (around $2.1 million) in cryptocurrency.

The new case again puts Coincheck in the spotlight once more, as the exchange has yet to disclose details of how it plans to compensate victims who saw some $530 million-worth of NEM tokens stolen from the exchange on Jan. 26.

As reported, following the heist, Coincheck said it would refund victims with its existing capital. Yet, the claim has drawn attention from Japan’s financial watchdog, which said it will conduct an on-site inspection to determine the firm’s capability of repaying such a large amount.

Seven Coincheck customers previously filed a class action – the first against the platform – on Feb. 15, according a Reuters report.

That case sought damages of $183,000 in cryptocurrency assets, and also demanded that Coincheck pay 5 percent annualized interest on the amount until a refund is possible.

Currently, Coincheck has only reinstated the withdrawal of Japanese yen on its platform, prompting an immediate outflow equivalent to $373 million on the first day of resumption on Feb. 14.

Meanwhile, the platform’s plan for cryptocurrency withdrawals and compensation are still unclear.

Japanese yen image via Shutterstock

Banking Group SBI Delays Crypto Exchange Launch

Japanese banking giant SBI Group has again postponed the launch of its new cryptocurrency exchange, citing a need to boost security measures.

In an announcement Tuesday, SBI said that, while the new platform – called SBI Virtual Currencies – has already started offering account registrations to certain priority investors, it will postpone applications from ordinary customers and thus push forward the date for the start of trading.

In a brief explanation of the reasons for its delay, the platform said it will need more time to “further strengthen security measures,” as well as determine how to manage asset custody, and finalize its customer management system.

The announcement marks the latest update in what has been a rather lengthy move toward the launch of Japan’s first bank-backed cryptocurrency exchange.

As reported by CoinDesk, SBI’s plan to establish SBI Virtual Currencies was first made public in October 2016 and completed business registration with Japan’s Financial Services Agency (FSA) in September 2017.

Yet, in December of last year, the firm postponed its schedule for accepting account registrations from the general public.

While the stated security concerns may not be related, the latest delay also comes soon after the FSA increased its scrutiny over Japan’s cryptocurrency exchanges – especially regarding security issues – as a result of a recent hack in the country.

On Jan. 26, the Coincheck exchange announced that some $530 million-worth of NEM tokens had been stolen, an event that led to an FSA investigation and demands for improved security across all crypto exchanges.

Osaka city image via Shutterstock

Singapore Weighs Need for New Rules to Protect Crypto Investors

The Monetary Authority of Singapore (MAS), the city-state’s de facto central bank, is reportedly looking at whether new rules are needed to protect cryptocurrency investors.

According to a Reuters report, Ong Chong Tee, deputy managing director of MAS, said during a speech Thursday that his agency is currently “assessing if additional regulations are required in the area of investor protection,” though he didn’t elaborate on the details.

The comment signals that a new regulatory framework may be imposed on cryptocurrency exchanges in Singapore, and comes as the monetary authority is already paying close attention to domestic cryptocurrency activities.

As reported by CoinDesk, in response to parliamentary inquiries, MAS chairman Tharman Shanmugaratnam has previously said that, while Singapore is not likely to ban cryptocurrency trading, his agency has been looking at imposing anti-money laundering and terrorism financing rules on exchanges.

The latest statement also follows the authority’s warning in December of last year – at a time when bitcoin’s price reached an all-time-high of around $20,000 – that investors must be extremely cautious in dealing with cryptocurrencies, which are not regulated by the agency.

Singapore dollar image via Shutterstock