Despite a rising death toll, the coronavirus may not be the only thing ready to break out.

The precious yellow metal and its so-called digital gold equivalent are on the verge of escaping containment themselves.

Are gold and bitcoin finally ready to play their parts as global risk-off assets? Only time will tell, but the charts increasingly say yes.

The slide in stocks from mid-January seems to coincide with increased awareness of this potential new pandemic. But gold and bitcoin are marching ever onward as investors run for cover.

Bitcoin pierced the $9,100 handle late Monday but only temporarily, as traders took profits. The flagship cryptocurrency is not far from posting a new yearly high in the $9,200 area:

Thats excellent news for 2020 buyers, not so much for mid-2019 ones. But despite a deceptively superior-looking gold chart, bitcoin still dominates in the safe haven space.

Gold, too, is about the break out after having posted multi-year price gains above $1,600 on Jan. 8.

The commoditys stellar two-year performance looks strikingly similar to its post-global recession price run.

If that scenario plays out, it may even test its all-time high above $1,900 a troy ounce sometime this year.

For gold-punting investors who cant operate their bitcoin wallets, the below chart makes an excellent argument for crypto.

Youll notice that the bitcoin-to-gold ratio is forming a classic bull flag pattern:

This typically resolves with a big push to the upside. Bitcoin is already worth five times its tangible brother in price terms, and if this pattern plays out, it may be worth upwards of 15 times that.

Gold has long held the mantle of risk-off king. But a real financial panic has not emerged for more than ten years:

The decade-long bull market will have to end sometime. Only then will we know the full potential of these competing global hedge assets.

If coronavirus has its way, that may be sooner than we think. Ironically, gold underperformed during the last financial crisis, losing roughly 10% of its value until early 2009.

Bitcoin, on the other hand, has yet to be tested. Until it is, theres no way to know for sure whether it really is digital gold.

Disclaimer: The views expressed in this article do not represent investment or trading advice from CCN.com.

This article was edited by Sam Bourgi.

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Coronavirus Infects Gold and Bitcoin: Both Assets Poised for Risk-Off Break Outs - CCN.com

Bitcoins (BTC) risk-return is a different beast compared to even the darling of the stock market of the 2000s, Amazon.

That was the conclusion drawn by one of the cryptocurrency industrys best-known analysts and the creator of a uniquely accurate Bitcoin price model.

Uploading a chart showing BTC risk-return versus Amazon stocks, U.S. bonds, gold and the S&P 500 on Jan. 24, PlanB showed Bitcoin behaved completely differently as an investment.

Amazons significant losses in the year 2000, combined with its revered recovery ever since still keeps it far below Bitcoins risk-reward ratio.

Bitcoin is a different beast! PlanB summarized, describing Amazons position on the chart as much closer to normal.

Amazons share price appeared to shake off revelations involving Saudi Arabia allegedly hacking CEO Jeff Bezos this week. Both $AMZN and BTC nonetheless fell over the past seven days, with the latter potentially reacting to uncertainty stemming from China.

Bitcoin risk-return vs. major investments. Source: PlanB/ Twitter

The impressive contrast comes days after Cointelegraph reported on Bitcoins risk-adjusted returns outperforming every major investment offering based on a four-year investment.

Then, PlanB appeared to hint that four-year periods the time between each reduction in the new Bitcoin supply could continue to boost performance.

Further, cryptographer Nick Szabo added, the susceptibility of traditional instruments to react to government and central bank meddling in currency markets meant Bitcoin was a natural fit for long-term, or low-time preference, investors.

PlanBs price model, stock-to-flow, has correctly called much of Bitcoins historical behavior and continues to forecast a level of $100,000 for BTC/USD in 2021.

At current levels, markets continue to conform to stock-to-flow, at $8,300 trading just below its suggested range. Before the next halving in May, $8,300 is, in fact, the average price the model says Bitcoin will trade at before moving significantly higher.

Read the rest here:
Bitcoin Risk-Return a Different Beast Compared to Amazon: Analyst - Cointelegraph

An interesting poll on Twitter revealed that if Bitcoins price reached $100,000, most people would prefer to sell either all or some of their holdings for fiat. A comparison with another poll, however, shows an exciting consistency with what Bitcoin holders supposedly intend to do.

One of the most important decisions that an investor has to do is to come up with an exit strategy. In other words, they need to have a clear picture in mind as to when to sell their holdings.

Bitcoin is no different. Despite the multitude of specifics that it has compared to traditional assets, its also an investment option as any other its price goes up and down. As such, those who buy it as a means of investment need to come up with a figure at which theyd eventually dispose of their holdings.

Thats precisely what popular cryptocurrency commentator Chris Dunn aims to understand with his latest Twitter poll.

In a straightforward question, Dunn asks Bitcoin holders what they would do if BTCs price reaches $100,000. Over 1,700 people took part in the survey, where 45% of them answered that they would sell some or all of their BTC for fiat.

Another major part of the voters answered that they would sell their Bitcoin for physical assets. In other words, $100,000 seems like a number that a lot of people consider as a price target to dispose of their BTC holdings, at least partially.

Going beyond this, however, the poll also reveals a very interesting similarity when compared to a similar survey from not so long ago. In late 2019, Cryptopotato reported on a similar poll carried out by Binance Life, which showed that 23% of the people dont intend to sell their Bitcoin holdings at all.

In Dunns poll, 20.8% of people said that they wouldnt be selling their BTC if it reaches $100,000 but instead would HODL everything.

This brings us to the other group of people who buy Bitcoin those who are in it for what it was intended to be a viable, peer-to-peer means of electronic payments. In a scenario where Bitcoin replaces traditional fiat currencies, however far-fetched this might seem right now, one wouldnt need cash as hed be spending his bitcoins instead.

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BTC HODL Target Found? Almost 50% Say They Will Sell If Bitcoin Price Reaches $100,000 - CryptoPotato

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. The technical setup is critical, although it hides danger if it doesn't materialize, as I explain in the technical section.

The essential notes of the day regarding the crypto ecosystem:

- The World Economic Forum presents a project to promote the adoption of a "robust" framework for the Crypto ecosystem, involving both the private and public sectors.

- A group of Bitcoins Cash miners from both North America and Europe are threatening to promote a hard fork as a lobbying measure against BTC's intention. TOP's CEO Jiang Zhuoer is using 12.5% of the mining rewards to cover infrastructure costs.

The ETH/BTC is currently trading at the price level of 0.01903 while attempting to stay above the EMA50. The excellent performance of the Bitcoin yesterday harmed the price.

Above the current price, the first resistance level is at 0.01965, then the second at 0.020 and the third one at 0.022.

Below the current price, the first support level is at 0.0189, then the second at 0.01865 and the third one at 0.018.

The MACD on the daily chart is preparing for a bearish cross above the zero line, a typical consolidation structure. This configuration increases the chances of seeing recent minimum levels below 0.018 again.

The DMI on the daily chart shows bulls in continuous decline, while bears are increasing their strength and are close to disputing the lead to buyers.

The BTC/USD is currently trading at the price level of $8961. The session high is at the price congestion resistance at $9150.

The long term downward trend line is at $9025, while the BTC/USD finds support at the SMA200 which is at the price level of $8903.5

The BTC/USD must close the day above the $9,025 level to confirm the exit from the long term bearish scenario.

A close below the SMA200 would cancel the current bullish breakout scenario.

Above the current price, the first resistance level is at $9150, then the second at $9550 and the third one at $10500.

Below the current price, the first support level is at $8900, then the second at $8800 and the third one at $8400.

The MACD on the daily chart is near to move upwards again, but it is not confirmed yet. Taking market positions with this structure involves a lot of risks, both upward and downward.

The best option is to wait for the price to dictate the path the price will take in the following weeks.

The DMI on the daily chart shows bulls trying to get back above the ADX line. The most likely pattern indicates that the bulls will fail to cross, and the price will fall.

The ETH/USD is currently trading at the price level of $170.46and is far from reaching the SMA200 as the BTC/USD has done. The long term downward trend line is now at the $185 level.

Above the current price, the first resistance level is at $176.7, then the second at $180 and the third one at $190.

Below the current price, the first support level is at $170, then the second at $160 and the third one at $155.

The MACD on the daily chart shows a neutral profile, as even though the typical trend of this structure is bearish, the fact that it remains so horizontal shows underlying strength upward.

The DMI on the daily chart shows the bulls moving up again as the bears retreat. The structure confirms the price movement.

The XRP/USD is currently trading at the price level of $0.2326and is the only Top 3 that is already free of the long term bearish trend. The day's high remains at the SMA100 level at $0.2358.

Above the current price, the first resistance level is at $0.237, then the second at $0.253 and the third one at $0.267.

Below the current price, the first support level is at $0.227, then the second at $0.217 and the third one at $0.20.

The MACD on the daily chart shows a similar structure to that described for the ETH/USD, leaving a neutral situation with a slight downward trend.

The DMI on the daily chart shows the bulls moving upward, while the bears are moving downward. They do not provide any additional information about price behavior.

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Top 3 Price Prediction Bitcoin, Ethereum, XRP: Bitcoin moving on the razor edge - FXStreet

The proposed Bitcoin Cash (BCH) tax levy on miners could now be dead in the water.

Bitcoin.com one of the five mining pools backing the plan has withdrawn its support for the tax plan. The sudden u-turn comes just hours after an anonymous group of miners threatened to launch a hash war in opposition to the tax.

Tuesdays post by BCH mining pool, Bitcoin.com, announced the firms re-thinking of the BCH tax proposal. While the possibility of another chain split remains possible, Bitcoin.com will not continue to support the tax plan.

As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible.

Tuesdays blog post noted the tax plans lack of clarity when it came to deciding where the $6 million in tax collections would go.

We think the lack of clarity in this is one of the main drivers of confusion and contention around the various funding proposals. In venture capital, investors do not find talented technical individuals and hand them money to do something.

The tax was initially levied as a way of funding Bitcoin Cashs development in-house. A 12.5% tax would be collected from BCH block rewards for 6 months until $6 million was raised. These funds would then be distributed to BCH developers for the betterment of the project.

The reason funding discussions are taking place is because proper funding will strengthen the Bitcoin Cash ecosystem, but it cannot come at the expense of compromising the foundational goals of Bitcoin Cash. Bitcoin.com will not risk a chain split or a change to the underlying economics.

The anonymous mining group which threatened the chain split took notice of Bitcoin.coms reversal. The group announced their intention to halt plans for a hardfork, and will continue to support BCH for the time being.

We have taken notice of Bitcoin.com post here. We trust Bitcoin.com are going to be able to convince the rest of the signatories to severely amend the IFP. We are therefore standing down and will not start our competing pool for the time being and will continue to support the BCH pools instead.

The tax proposal triggered vigorous debate among developers, miners and investors in the week since its announcement. Originally declared set in stone by its author, Jiang Zhuoer, the plan attracted criticism on a number of fronts.

But the turning point for Bitcoin.com came when the prospect of another chain split reared its head. Both Bitcoin Cash (BCH) and Bitcoin SV (BSV) spent tens of millions competing for hashrate in 2018.

The previous war also had a disastrous effect on cryptocurrency prices, not least Bitcoin Cash itself. The coin lost 87% of its value in five weeks in November of that year. A repeat of this messy affair is sought by no one in the cryptocurrency space.

This article was edited by Samburaj Das.

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Crypto Killed the Tax Man: Bitcoin Cash Escapes Hash War Over Mining Tax Grenade - CCN.com