Some much welcome relief in the crypto markets today as Bitcoin bounced strongly off yesterday’s incredible low near USD 6,500 and has traded the past 24 hours above USD 7,000, ensuring that support level remains intact for the mid-week trading channel.
Of course, the danger has not been averted and we still have a long week before the end of November to see where the direction of Bitcoin is going. According to most analysts, the bounce was always going to be expected, especially with technical analysis showing extremely oversold conditions and seller exhaustion beginning to show on intraday charts.
Nevertheless, bullish reversals will only be on the cards if prices can push upwards, above USD 8,000 perhaps, or even higher, according to crypto influencer and Adaptive Fund partner Willy Woo. He said earlier:
“Bitcoin needs to close above $8,300 by the end of the month or we’ll likely have a bearish December to test new lows.”
RSI indicators are oversold not just on 14-day markers at 20, the lower for almost two months. RSI isn’t by any means a bullish signal, but more that of a bounce or pause, as can be seen from the past 24 hours.
These bargain prices are continuing to attract buyer interest, anyway, as can clearly be seen by Google search interest in both the terms “Bitcoin” and “Bitcoin halving”, with sub-USD 7,000 prices driving a surge in online searches.
Trading platform eToroX also reminds us to look to the future, some six months from now, when Bitcoin scarcity comes into play after the rewards halving scheduled to take place around May 2020. It says that prices usually go up as a consequence of halving but warns that other factors including volatility can have their say:
“Empirical evidence has shown that there is a net increase in the short term and long-term prices of Bitcoin after halving. However, caution is advised, given the volatility of the market, plus various other dynamics which could have an impact.”
Meanwhile, one of the world’s oldest volunteer-based humanitarian organizations, the Red Cross, in the form of three national units in Kenya, Denmark and Norway, have given a nod to blockchain technology. According to the Thomas Reuters Foundation, these three national Red Cross societies have launched a two-year plan to replace cash and voucher provision in aid and development with “local currencies” based on blockchain.
The alternative financing project aims “to smooth trade in communities and spur economic activity”, hoping to improve efficiency of an annual USD 1 billion in aid that the Red Cross distributes as cash and vouchers in “cash-based programming”. This has been the modus operandi for a significant portion of the global organization, typically in post-disaster recovery scenarios.
According to them, the new currencies will be mobile-based credit transfers that are automatically recorded with blockchain. Very similar to existing mobile money transfers already used in Kenya, like M-Pesa, villagers can now ask to be paid for their work or spend their earned credits on local services and goods. The difference here is that users don’t need to hold actual fiat currency.
After being trialled in Kenya and Ethiopia, this was found to have boosted economies in poor communities, as it allows work, sales and aid to create credits, and allows it to be traded over and over in a local system. Its success will see expansion in Kenya and a possible rollout to other communities in Malawi, Myanmar, Zimbabwe, Cameroon and Papua New Guinea.
aiming to reach 320,000 users in the next two years.
With some 320,000 users targeted up to 2021, humanitarin consultant Paula Gil says the technology could bring about a shift in the way aid is done. She said:
“This is the future… probably the only true use of blockchain for good.”
Grassroots Economics founder Will Ruddick is behind the foundation developing these community currencies for the project. He believes its use could be the way development and resilience-building is done globally. Ruddick explained:
” [the system] lets 25 women with [simple] feature phones create their own credit and savings pool using totally automated systems.”
It is a timely reminder for us that, whatever the price Bitcoin is trading at, its underlying blockchain technology is helping the world as we speak.
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