Crypto Indicator Signals Huge Spike in Bitcoin (BTC) Profit Taking – Plus Ethereum, XRP and Ripple Updates
From a flashing Bitcoin signal to a push to expand decentralized finance on the Ethereum network, here’s a look at some of the stories breaking in the world of crypto.
An analyst at the crypto data firm Glassnode says a sudden spike in a little-known Bitcoin indicator suggests crypto traders are currently taking profits at a higher rate than at any other point in 2019.
A chart of Bitcoin’s average spent output lifespan (ASOL) shows Bitcoin that has been dormant for as long as 250 days is now being moved.
According to Rafael Schultze-Kraft, the spike is a sign that traders may be moving their BTC to exchanges in order to cash out.
“There is a huge spike in the Average Spent Output Lifespan (ASOL) for Bitcoin today.
It’s the highest we’ve seen this year. On the hourly chart, bitcoins as old as 250 days are being moved. This corresponds to mid-March when the price was at ~$4,000. Profit taking here?”
Daily analyst Josh Rager says BTC now needs to stay above $8,325 in order to prevent a larger shift to the downside.
“[The chart shows a] bounce off of $8,370’s. This area acted as resistance for during the previous range (outside the fake-out pump in early Oct).
This area needs to hold, a weekly close below $8,235, in my opinion, would lead to more downside. Currently, every time frame under monthly looks ugly.
The Ethereum-based decentralized finance (DeFi) platform Compound just raised $25 million in a funding round led by venture capital goliath Andreessen Horowitz, reports Fortune.
Compound is a decentralized crypto lending platform that allows people to use Ethereum as collateral to borrow capital, which is distributed in the form of stablecoins.
“…founder Robert Leshner said Compound now has over $150 million worth of assets on its platform, and that it plans to use its new investment to make the service more accessible to ordinary people.
DeFi is designed to replace traditional financial instruments with a decentralized alternative that’s not controlled by corporations or governments.
Ripple and XRP
Brazilian payments startup BeeTech Global is revealing how it’s currently using Ripple’s cross-border payment messaging system to pass savings on to its customers.
The company’s chief strategy officer Alexandre C.R. Liuzzi says it’s using the tech, which is designed to be faster than Swift, in order to power remittances in the Euro Zone.
“With Ripple, we’ve standardized the process for integration across different rails and increased efficiency in settlement.
We’re saving our customers more than $14 million in transaction fees. We’re talking about families who are sending money to their children studying abroad and small businesses whose main source of income comes from exports. This is huge for them.”
Rumors that BeeTech is exploring Ripple’s XRP-powered On-Demand Liquidity have persisted for months, but so far the company has not made an official statement on whether it plans to test the technology.