Kategorie: Crypto Analysis

The entity-adjusted dormancy flow has historically been used to mark potential price bottoms in the Bitcoin market.

Bitcoin continues to struggle with sell-off pressure since its dip below $40,000, with a recent bounce fading off near $39k and then Thursday’s downturn pushing it below $37k once again.

Will Clemente, a popular analyst who hosts the Bitcoin Intelligence podcast and writes a newsletter to over 70,000 investors, believes the current price levels put BTC in a position of a potentially huge bounceback move.

According to the analyst, the benchmark digital asset is trading at its fourth most oversold level in history.

And what metric does he look to as an indicator of a possible bullish reversal? He points to Bitcoin’s entity-adjusted dormancy flow.

„Bitcoin is currently the 4th most oversold in its history according to dormancy flow. Dollar-cost averaging more heavily into this area is probably the best approach for the long-term investor,“ he tweeted.

Bitcoin is currently the 4th most oversold in its history according to dormancy flow.

Dollar-cost averaging more heavily into this area is probably the best approach for the long-term investor. pic.twitter.com/5c2irfOL5L

— Will Clemente (@WClementeIII) January 31, 2022

What’s entity-adjusted dormancy flow?

The dormancy flow basically relates to a measure of whether it’s old coins or new coins that are being moved on-chain every other day. High figures indicate its old coins moving while low figures suggest it’s mostly new coins.

To get the entity-adjusted dormancy flow, the coin destroyed value (dormancy flow) is divided by the market capitalisation.

BTC bottoming

According to the chart, dormancy flow has fallen significantly since the November peak as has the entity adjusted values. Currently, the indicator is below 200,000, with values this low having only been recorded on three other occasions- 2011, 2015, and 2019.

Historically, the market has rallied after the entity adjusted dormancy values fell below 250,000, the latest being in March 2020 and January 2022.

Bitcoin rallied to new highs in each of the previous cases and a similar trajectory would mean the bottom is in around current price ranges. 

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When many people hear about cryptocurrencies, the first ones they think of are bitcoin and ethereum. Though these two most popular tokens have given investors tremendous profit, there are some other cryptocurrencies that are undervalued but could turn out to be profitable investments this month. This article describes 2 of these cryptocurrencies and why you should consider them.

Cardano (ADA)

Cardano was built by Ethereum co-founder Charles Hoskinson. It was founded on peer-reviews and evidence-based methods. The fast-growing network uses the proof of stake algorithm to create blocks and validate its transactions on its platform, making it more efficient than Ethereum in terms of scalability, interoperability, and sustainability. It also seeks to improve upon Ethereum’s current infrastructure, making experts suggest that it might replace Ethereum in the future.

Many might be blinded by the present ADA low price of around $1.07, not considering that the token has a lot of potentials as the long-awaited Ethereum 2.0 upgrade is yet to happen. Many developers are looking for a way to bypass the high gas fees and high congestion in the Ethereum network. Since Cardano performs many functions better and faster than Ethereum, we expect it to keep gaining developers‘ and investors‘ attention this month and beyond. 

Polygon (MATIC)

Polygon combines Ethereum and sovereign blockchains into a complete multi-chain system. It also solves the problem of high gas fees and slow speed while maintaining high security. It is similar to Polkadot, Avalanche, Cosmos, etc., in its multi-chain system and also has some other advantages over many of them. It is inherently more secure, benefits from the Ethereum network’s effects, and is open and powerful.

Its transaction speed also makes it a good investment opportunity as it processes up to 65,000 transactions per second using a single side chain. These qualities also attract investors and developers, and this underrated token could be a good buy this month.

The price of MATIC is presently around $1.6 moving away from its January low of $1.3. We expect to see more bullish moves this month and beyond.

Conclusion 

The opportunities to invest in the crypto world are becoming bigger every day. You can make the best out of it by making calculated moves.

The post Best two undervalued crypto to buy in February appeared first on Coin Journal.

Key points:

•  Both are undervalued and could rally as the market turns bullish.

• Tezos has more potential due to its growth in the NFTs market.

•  Tezos is also a major player in DeFi, a fast-growing aspect of crypto.

Filecoin (FIL)

In its simplest form, Filecoin is a distributed storage system that allows users to rent unused hard drive space. The project was created by Protocol Labs and built on top of the Interplanetary File System. It allows for easy access from anywhere in the world without any additional cost or waits time during delays because it’s an open-source effort with no single point failure like other companies have had before them.

Tezos (XTZ)

Tezos is a next-generation blockchain that has been designed from the ground up to be scalable, secure, and flexible. This means it can execute peer2peer transactions with high speed while also serving as an excellent platform for deploying smart contracts – all without sacrificing any of its core features or principles.

Which one is a better buy?

Both Tezos and File coin are good investments in February. Both of them have the fundamentals to rally and test new highs in 2022.

However, on a comparative basis, Tezos has more potential. Tezos has seen its share of the NFTs market grow, and this is a big deal because NFTs are on a growth path at the moment, a factor that could help drive up the demand for platforms like Tezos.

For instance, in late 2021, Formula 1 team, McLaren Racing, introduced a non-fungible tokens (NFTs) platform where digital art collectors can buy F1 collectibles. This is built on top of the Tezos blockchain protocol which is preferred by many in this industry because it provides greater security than other similar networks.

Tezos has also been gaining traction as a DeFi platform, another growth area in crypto that could take crypto to new lengths.

All these factors make Tezos a top cryptocurrency to watch, even though file coin too has good odds of profitability.

The post Filecoin v Tezos, which one is a better buy? appeared first on Coin Journal.

• The bullish price estimate for OMI is between $0.0062 and $0.0125.

• The price of OMI may hit $0.02 this year. 

• The OMI negative market price forecast for 2022 is $0.00461.

The cryptocurrency market seems to be rapidly rebounding in recent days. After a negative run in the previous months, bulls have gradually increased in the past week. At the moment, it seems that the crypto-asset business will resume its upward trend.

Price is currently trading at the Central Pivot, price trading above P indicates that OMI uptrend may extend for some time because the final candlestick is above P.

The latter indicates that the current gain in ECOMI (OMI) value is unlikely to cease soon, as there may be stabilization and a resumption of the bullish trend which may lead us to break the previous all-time high and tap a high of 0.02 before the year ends. 

The long-term OMI price forecast for 2022

OMI is likely to trade around its current all-time high of $0.01338. Nevertheless, this will only transpire if many earlier psychological barriers are broken.

If the current upward pattern holds, ECOMI might be worth $0.02 by the conclusion of 2022. Furthermore, the first half of 2022 will see a modest increase of up to $0.0082. With planned collaborations and advances, achieving $0.03 is somewhat ambitious in terms of pricing, but it is undeniably doable in the foreseeable future.

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• Litecoin is trading at $114.2, the highest level since the 27th of January. 

• Release of MimbleWible to positively affect Litecoin.

The recent selling pressure caused by macroeconomic considerations has been and will continue to be alleviated in February. Some analysts believe this month of February has traditionally been optimistic for Litecoin and the crypto industry.

Release of MimbleWimble

Without a doubt, the subsequent declaration of LTC’s MimbleWimble development as either a Release Candidate or beta might have a positive long-term influence on Litecoin. The update has been in the works for many years and is one of the most anticipated product launches for this cryptocurrency in its community.

The news was made on Twitter by the MimbleWimble’s and Litecoin Foundation’s primary creator, David Burkett. Burkett used the MWEB extension to release the first LTC domains, which may be viewed below.

The developer began focusing on this update in 2019, and as the Foundation stated, MimbleWimble would be included in this cryptocurrency’s Core 0.21.2 version sample with an extra privacy-related enhancement. 

According to Guy Corem, MimbleWimble will be authorized by the Litecoin network if 6,048 nodes are alert for its deployment beginning at block heigh 2,217,600. Before this time ends, the update must be accepted by 75% of the LTC nodes.

The Litecoin Foundation confirmed that the community and miners might start pushing for MimbleWimble when they get the update code. The commencement date for the execution of this plan will be set after the stated threshold is met.

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