8 August 2020

Bitcoin Recovers from Crash, Eyes $12,000 Support Level

After a $1,400 crash last Sunday, August 2nd, the Bitcoin price has managed to make fresh gains over the week. On Thursday, August 6, the BTC price moved close to $12,000 levels which currently looks to be the next big resistance for the world’s largest cryptocurrency.

Source: TradingView

It remains to be seen if the Bitcoin bulls can help BTC convincingly past the $12,000 levels and make it a new support. But one thing that is grabbing analysts’ attention is the rising correlation of Bitcoin with physical gold. Reportedly, the correlation between the two assets has reached an all-time high. As of yesterday (8/7), Bitcoin (aka Digital Gold) is seen stabilizing nearly 6x times against physical gold which is trading at $2000 per ounce. As central banks continue to bring some new quantitative easing measures, a Bloomberg report expects this correlation to continue.

Bloomberg report stated: “Stabilizing at about 6x the per-ounce price of gold, Bitcoin’s increasing correlation and declining volatility relative to the precious metal indicate an enduring relationship for price advancement, in our view. Unparalleled global central-bank easing should remain a tailwind for the quasi-currencies.”

This means that if gold continues to rise at around $3000, the Bitcoin price could go up to $18,000.

Will BAND Steal Some of LINK’s Luster?

Coming out of a record-setting July in the crypto markets, it is hard to avoid borderline romantic conversations about LINK. And rightfully so! The nature of LINK, in which its decentralized oracle network can feed “real-world” off-chain data to smart contracts, has led it to lock in some huge partnerships and soar on the headwinds of the DeFi explosion.

The result has been a major rally in price over the last few months. There was a chart made available by IntoTheBlock that highlighted that LINK’s recent rally has resulted in 100% of its supply is “in the money” (i.e. 100% of addresses are holding LINK at higher than they purchased it for).

Percent of Chainlink supply in/out of the money. Source: IntoTheBlock

But don’t think that LINK is the only oracle network in town. Earlier this week, BAND surprised investors as it rallied by 45% in a matter of minutes when Coinbase announced that BAND would be available on August 10th. The announcement, which formally welcomes BAND to investors outside of Binance, has already generated massive buzz in the crypto community.

Complementing the announcement of Coinbase, BAND continues to benefit from the massive growth of DeFi  while continuing to lock-in key partnerships such as Elrond. In the case of DeFi, BAND (as well as LINK) provide a means to deliver market data to DeFi applications which cannot access raw data from other blockchains. On the enterprise side, BAND offers significant improvements to existing data & scalability to an ecosystem such as Elrond, which provides a foundation for large-scale decentralized applications (DApps). 

It’s difficult to say whether BAND and LINK are playing a zero-sum game; however, it’s clear that both stand to benefit themselves and investors as oracles solidify their place in the ever-expanding demand for financial and enterprise applications.

Time to Wake Up to Blockchain-as-a-Service

The Blockchain-as-a-Service (BaaS) industry is currently witnessing unprecedented growth and is likely to be a $15 billion-plus industry by 2023, growing at a Compound Annual Growth Rate (CAGR) of 90.1%.

To support cryptocurrency developers and other innovative projects during this testing COVID-19, the NOWNodes team has extended its personal free plan to now over 50,000 requests per day on its BaaS platform. To start working with it, a user first just needs to receive an API key. The NOWNodes service uses JSON RPC to provide access to its nodes as well as the BlockBook API for the blockchain explorers.

Instead of using several different services and maintaining some complex infrastructure, NOWNodes helps users to build crypto and blockchain products faster. The platform offers fast, reliable connections, and SLA for things like crypto exchanges, crypto wallets, crypto processors, and DApps. NOWNodes provide access to explorers of nearly 40 most popular blockchain networks. It hosts full blockchain nodes and explorers for networks like BTC, KMD, XMR, and DGB.

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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