Bitcoin Developers Have Technical Expertise That Users Don’t

Bitcoin Developers Have Technical Expertise That Users Don’t

Bitcoin is defined by its users, but how many node operators understand and verify protocol changes on a nuanced and deeply technical level?

This is an opinion editorial by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.

Bitcoin is ultimately defined by its users, by the people actually running nodes and enforcing the protocol rules to verify the payments they receive over the network. This is a fundamental and inescapable property of the Bitcoin network, so long as users choose to engage in this activity. This does not however mean that users deeply understand how the protocol works, the different effects that proposed changes would make or the most efficient way on a strictly technical level to handle a problem or improvement. Users absolutely can understand these things if they take the time to do their research and actually learn about the protocol on a strictly technical level, but to assume you as a user understand these things simply because of the reality that users are the ultimate arbiters of how the protocol works based on what software they choose to run is pure hubris.

Just because you drive a car does not mean you understand the deep and nuanced engineering trade-offs as well as the engineer who designed the car. Just because you use a cellphone every day does not mean you understand how to optimize the power consumption of all the different radio transmitters, WiFi, Bluetooth, cellular, etc. Using something does not mean understanding how it works by default. This is something that should be very obvious to a person who is being honest with themselves.

So why do so many users without much technical expertise or familiarity with how things work under the hood feel so confident in declaring how things work under the hood, while getting all the details and facts wrong? Now, I feel like in this climate, I have to add a million caveats. I’m not talking to you, the software developers building applications, or who work in some normie tech field without the time to contribute to Bitcoin in some way, but who follow it regularly; I’m not talking to, the user who has actually put in what is frankly an unhealthy amount of time (trust me, I know by experience) in understanding how things work under the hood. I am talking to you, the average user who just listens to some podcasts now and again, and dollar-cost averages (DCAs) and doesn’t really deeply follow the development of technical things in this space. I’m talking to the user who literally hasn’t even withdrawn their funds from the exchange you bought them at yet. I’m talking to you, the user who, when running your business, just had their Bitcoin friend set up a mobile wallet for you to accept Bitcoin the one out of 100 times a customer pays with it.

Why are you so confident in your opinions about the technicals of how Bitcoin works?

How familiar are you with the mempool policy of how transactions are relayed? Did you know that there is a big difference between policy rules and consensus rules? That there are transactions that are perfectly valid by consensus to be included in a block, but by mempool policy, will not be relayed by anyone’s node, so that miners have to be directly given that transaction and use custom code to include it in a block?

What about the fact that the Lightning Network actually doesn’t use hash time-locked contracts (HTLCs) for very small value payments? Did you know that for a 10 satoshi payment for example, the Lightning Network doesn’t actually use HTLCs or make the payment success or failure atomic with Bitcoin script? Those very tiny payments are actually rounded off into miner fees during the “middle period” when they are not yet finalized and confirmed with the channels. This means that if a hop along a payment path has one side stop cooperating, there is no way for that node to enforce getting paid or refunded on-chain, depending on which side you are discussing for that specific payment. It just goes to miner fees for a transaction, no actual HTLC output in the channel commitment transaction is created for routing that payment. It’s just a “best try” system of honesty with no enforcement. Did you know that?

Here’s a fun story. Bitcoin has two opcodes for time locking, check lock time verify (CLTV) and check sequence verify (CSV). CLTV prevents a coin being spent before a certain predefined Unix timestamp or a predefined block height. CSV prevents a coin being spent until after “x” amount of time has passed or “y” blocks have been found since the block or time that coin was created. When you spend a coin using CLTV or CSV in the script there is a field in the actual spending transaction called nLocktime that must be set to the value the CLTV or CSV script used. The original purpose of this field was to have presigned transactions that couldn’t be mined until that time or block had passed. But Satoshi Nakamoto himself also had another use in mind for this: a very basic form of payment channel. The idea was that you could take the nLocktime field and increment it up by one each time to create a new net payment, and have miners settle the most recent one by count.

The problem is there was no consensus rule or way to enforce miners have to settle the most recent transaction. So Nakamoto himself planned to use this field in the transaction to require miners to settle only the most recent — or highest numbered — transaction. Except there wasn’t actually any consensus rule to enforce that! Not only wasn’t there a consensus rule, but it was impossible to construct one because miners are capable of including any valid transaction in a block. Once you sign a transaction,  it is valid, it is always valid. So there was no logical way for Nakamoto’s original idea to ever work in the first place.

Think about that for a second. The creator of Bitcoin envisioned something being built on top of Bitcoin that was literally impossible to build in the way he imagined working. Think about that. The creator of the entire protocol built some function to do a certain thing, when doing that certain thing in that way is literally not possible.

Why are you so confident in your understanding of how Bitcoin works on a technical level? Why are you so confident that your ideas about what effects certain changes will have are actually correct? The creator of the protocol had such a terrible misunderstanding about how it worked that, to be frank, I am kind of embarrassed for him that he thought such a thing would be possible to build in that way.

So what is the point of all of this? That experts still exist. That users ultimately being in control of the protocol and having the ultimate choice of what software to run and what rules to enforce does not change the reality that there are people who understand how this protocol actually works better than you. People’s understanding of things is directly correlated to how much time they have spent actually trying to learn about and understand the thing.

You can’t just magically understand how Bitcoin actually works just because you buy it, or use it or buy things with it. That is not how knowledge works. So when Bitcoiners get involved in discussions of how things actually work on a technical level, when they start publicly talking about why they have made decisions about things in regards to running software and making rules, they should be aware of what they do and do not know because just owning bitcoin does not magically impart knowledge by itself.

The catch phrase of this space is “Don’t trust, verify.” So how many of you are verifying things before you start repeating them?

This is a guest post by Shinobi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

DeFi isn’t dead, it just needs to fix these 3 critical problems

DeFi isn’t dead, it just needs to fix these 3 critical problems

It’s been a rough year for DeFi, and it may not get any better until projects focus more on security, regulation and usability.

The persistent challenges faced by decentralized finance have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi.

Let's take a look at what experts say DeFi needs to do to have another revival. 

Improved usability

To date, the promise of open and uncensored access to a global decentralized financial system has been largely hampered by the complicated interface, confusing multi-step staking processes and a lack of clarity surrounding the yields on various tokens.

The user experience for most platforms is sub-par to what would be expected when dealing with multi-million dollar platforms and the layouts can be complicated, along with poor documentation that leaves users frustrated.

Adding to the confusion, an ever-growing list of blockchain networks with their own DeFi ecosystems can seem daunting to newcomers who may have never used a software wallet before.

Ultimately, a better system of educating the public about DeFi in a trusted setting is something that is needed to help the mass adoption process. Otherwise, you face the same problem of the current financial system where only a small portion of the population reaps the benefits.

Security needs to become priority #1 

The DeFi sector is often referred to as the wild west because anyone can launch a project with flashy promises only to pull the string on naive investors and leave them with a worthless token.

Well-meaning projects also fall victim to smart contract vulnerabilities that see their liquidity drained. A recent example of this was the February 2022 hack of the Wormhole token bridge, which resulted in the loss of 120,000 wrapped Ether (wETH) tokens.

For more people to feel safe exploring the expanding DeFi ecosystem and to keep governments off the back of the industry, a greater level of security and protection from malicious actors and protocol exploits will be required.

Related: Buterin: How to create algo stablecoins that don’t turn into Ponzis or collapse

Self-regulate, or be regulated

A third factor that is at the top of the list for many DeFi analysts is the need for greater regulatory clarity.

While the mere mention of such a thing generates a slew of objections from many crypto investors who value its unregulated nature, the majority of the general public who are not yet involved with cryptocurrencies and DeFi are likely to remain wary until the government gives the asset class a stamp of approval.

Thanks to the recent Terra ecosystem collapse, regulation could be one of the first challenges that DeFi has to resolve. 

What those regulations eventually look like is unknown, but they will help to establish a starting point that could help the DeFi sector evolve and mature.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

How The Extropian Quest For Digital Cash Secured Our Trips To The Stars

How The Extropian Quest For Digital Cash Secured Our Trips To The Stars

Before they were cypherpunks, the forefathers of Bitcoin were Extropians.

This article originally appeared in Bitcoin Magazine's "Moon Issue." To get a copy, visit our store.

Extropianism, a radically techno-optimistic and forward-looking philosophy developed by Max More in the 1980s, had by the early 1990s grown into a small Californian subculture. It attracted scientists, engineers, researchers and future-minded individuals who shared the transhumanist conviction that acceleration of technological advancements could realize an “upgrade” for mankind.

Extropians believed that humanity could transform through, and even merge with, technology. Brain chips would improve cognitive performance, nanobots could find and destroy cancer cells from inside the body, and consciousness was to be uploaded into computers. By eventually curing all disease as well as old age, even death itself could be conquered. As humans would attain indefinite life spans, civilization could grow, expand and prosper, forever.

Of course, nothing offers more potential for growth than outer space. Exploration of new planets, solar systems and galaxies was a key goal for the technoutopian movement. Extropians dreamed of expanding throughout the universe: Humankind was destined to establish industries in space, colonize exoplanets and travel to new horizons.

They explored this potential in Extropy, a magazine dedicated to the Extropian cause. Extropians interviewed biosphere researchers to learn if an ecosystem dome could be built on Mars. They speculated about faster-than-light travel through wormholes and considered the interstellar political implications of such a feat. And they outlined what technology and resources were required to migrate to different parts of the solar system: Think of asteroid mining, self-replicating green houses or microgravity.

And importantly, Extropians didn’t just want to fantasize about the future. They wanted to actually make that future happen, starting with the optimization of human potential, today, on Earth.

”From Konstantin Sokolovsky to Freeman Dyson and beyond, visions of space have fired our imagination. Space offers a vast field of future boundless expansion,” Extropy magazine contributor Nick Szabo wrote in an essay exploring the potential of extraterrestrial settlement. And, concluding the article:

“Space colonization will emerge from the work we do now to make Earth a free and prosperous place, an extropian planet.” 

The Extropians would find that the development of digital cash was key to achieving this goal.


In order to realize the Extropian vision, founder of the philosophy Max More had outlined the goals and strategy of the movement in an operation manual of sorts called “Principles of Extropy.” In it, he outlined the goals of the Extropian movement, while establishing that the Extropian tools to accomplish these goals were science and technology, built on reason and mixed with a dose of courage to transcend natural limitations.

“Science and technology are essential to eradicate constraints on lifespan, intelligence, personal vitality, and freedom. It is absurd to meekly accept ‘natural’ limits to our life spans,” More posited in “Principles of Extropy.” “Life is likely to move beyond the confines of the Earth — the cradle of biological intelligence — to inhabit the cosmos.”

Inspired by libertarian thinkers like economist Friedrich Hayek, author Ayn Rand and Enlightenment era philosophers, More explained that Extropianism called for “rational individualism.” By fostering a free market environment where productive, creative and innovative individuals could collaborate, interact and experiment, technological progress would flourish.

On the flipside, he believed that powerful states and big governments could really only hinder such progress: “Societies with pervasive and coercively enforced centralized control cannot allow dissent and diversity,” More asserted in the “Principles of Extropy.” “No group of experts can understand and control the endless complexity of an economy and society composed of other individuals like themselves.”

In the Extropian worldview, laws and regulations frustrated and limited the freedom to experiment and innovate, while taxes and subsidies interfered with the free market’s ability to effectively allocate resources to where it benefited society the most. By distorting both the creative process and the free market, governments represented brakes on human potential.


The short-lived fate of Starstruck served as one example of detrimental government interference. Cofounded by Extropian Phil Salin in the 1980s, Starstruck was a private space transportation company that experimented with sea-launched rockets. Salin believed that the time was ripe to establish a private space flight industry, where market dynamics would stimulate entrepreneurs to innovate and improve on existing rocket designs and other spacefaring technologies. Competition would drive humankind further into the galaxy.

But when Starstruck started offering its services, the company had a hard time attracting commercial partners. Salin didn’t believe that was due to a lack of interest in space transportation, however. Instead, he found that the taxpayer-subsidized Space Shuttle was consistently undercutting their business. As long as NASA’s trips to space were funded with government money, Starstruck couldn’t possibly offer competitive prices.

After just a few years and only one successful launch, Starstruck ceased operations. By extension, a competitive commercial industry for space travel had failed to lift off. Although NASA had been an early pioneer to promote innovation and progress in space technology, Salin believed that the government agency had now come to hinder further innovation and progress by discourging free market competition.

Even where governments tried to advance space exploration, Salin concluded, they hampered it — and that’s not even considering all the ways governments could limit private space enterprise through laws and regulation. For him and other Extropians, it proved that humanity’s expansion into the cosmos depended on reducing the role of the State.


Extropians believed that government interference had to be resisted, subverted and ignored. This led them to a new subdomain of interest: digital cash. 

As the world was increasingly becoming digital, cryptographer David Chaum — not an Extropian — was early to realize that money would eventually go fully digital, too. The problem, as he saw it, was that digital forms of money usually relied on a central ledger to maintain all currency balances.

Whoever controlled this ledger could then see exactly who was paying who, when, how much, and perhaps where, while they could even change balances or block transactions. Chaum was concerned that this power would end up in the hands of governments and that the implications would be draconian: a “Big Brother” for everyone’s finances.

Chaum had, therefore, in the early 1990s, founded a startup, DigiCash, to realize a digital cash system: A form of money for the internet that could change hands anonymously. His system was designed for the customers of regular banks, and typically used fiat currencies like the U.S. dollar, but offered private transactions by utilizing a clever new cryptographic solution for moving funds from one bank account to another.

When one of the Extropians, Hal Finney, learned about Chaum’s startup, he was quick to recognize the importance of digital cash, and decided to bring it to the attention of his fellow Extropians. Spread across seven pages in a 1993 edition of Extropy, Finney extensively explained the inner workings of Chaum’s digital cash system.

And, tapping into the group’s libertarian ethos, Finney explained why Extropians should care:

“We are on a path today which, if nothing changes, will lead to a world with the potential for greater government power, intrusion, and control,” he warned.

“We can change this; these [digital cash] technologies can revolutionize the relationship between individuals and organizations, putting them both on an equal footing for the first time.”

Finney was right. The Extropian movement proved a fertile environment for digital cash. Extropians agreed that privacy was a necessity if the State and its coercive forces were to be resisted, and they understood that privacy of transactions was an important aspect of that resistance.

The 15th edition of Extropy, published in mid-1995, could even be considered something of a digital cash special. About half of the magazine’s content was dedicated to the digitization of money, with a strong emphasis on the importance of protecting privacy in such a future.

Moreover, as they learned about cryptographically secured money, some Extropians began to realize that the potential could be even greater than privacy alone.


Where Chaum had concerned himself with the anonymous features of digital cash, the “digital cash special” of Extropy included articles that were more geared toward monetary reform. One magazine contributor speculated about local digital cash schemes backed by something other than national currencies, like access hours to a developer, who upon redemption of the notes would offer his or her services in exchange. Another contributor wrote a raving review of George Selgin’s book, “The Theory of Free Banking,” which outlined a financial system without fiat currencies. Lawrence H. White, Selgin’s closest ideological ally in the free-banking movement, had even contributed an article to the magazine himself.

Max More, the Extropian founding father, took it on himself to summarize and present, “The Denationalization of Money,” Hayek’s seminal work on competing currencies. More explained that inflation distorts prices, which causes malinvestment. He detailed how national currencies cause undesirable and otherwise unnecessary balance-of-payment issues between countries, and pointed out that fiat currencies make it harder for individuals to escape oppressive governments with their wealth intact. And perhaps most importantly, More explained how fiat currency helped grow the scope of government, as governments essentially “tax” people through inflation, which usually goes relatively unnoticed.

“The state expands its power largely through taking more of the wealth of productive individuals,” he wrote. “Taxation provides a means for funding new agencies, programs, and powers. Raising taxes generates little enthusiasm, so governments often turn to another means of finance: Borrowing and expanding the money supply.”

All of this meant that the fiat currency system frustrated the Extropian mission, More argued. If humankind was to realize breakthrough technological advancements, if it was to conquer death and explore space, governments’ persistent stranglehold over society and the economy had to be overcome.

The solution, as More summed up Hayek’s treatise, was to get the State out of the currency business and leave money to the free market:

“Instead of politically-influenced control by government, competitive pressures would determine the stability and value of competing private currencies.”

Max More focused his hope on electronic currency. He believed that Hayek’s vision could be made a reality by leveraging the recent interest and innovation around digital cash, calling on Extropians to consider the two issues — privacy and monetary reform — in tandem. Combined, it “would provide a potent one-two punch to the existing order.”


And then there were the Cypherpunks.

Around the same time that Finney started advocating digital cash in Extropy magazine, fellow Extropian Tim May had been taking action. He’d started recruiting privacy activists, programmers and cryptographers from the Bay Area, with his recruitment efforts extending to a special mailing list centered around the Extropian cause.

The group that May brought together would come to be known as the Cypherpunks. The Cypherpunks were dedicated to taking the cryptographic breakthroughs that had been circulating in academic circles for the past decade and a half, and bringing them to the public in the form of working software. The realization of digital cash was no small part of this effort.

The Cypherpunks were well aware of Chaum’s efforts to realize digital cash in order to offer privacy in transactions and prevent a dystopian future where “Big Brother” would have insight into everyone’s finances. But they merged this idea with More’s utopian vision where electronic money could, by helping limit State power, ultimately help humankind overcome death and venture into space.

It had an effect. In the years following More’s article in Extropy, several of those Extropians that had also followed Tim May to the Cypherpunk movement proposed digital cash schemes that offered a degree of anonymity and a monetary policy divorced from fiat currencies to boot.

Nick Szabo, the author of the Extropy piece on space colonization, proposed a system called Bit Gold. Hal Finney, who’d introduced the concept of digital cash to the Extropian community, offered a digital cash solution branded RPOW. And Wei Dai, a computer scientist who was active in both the Extropian and Cypherpunk communities, laid out a design named b-money. All three of them could operate independent of dollars, pounds or yen, instead relying on proof of work (hash power) to generate units of the currency and relying on the free market to value them.

In the end, these projects did not succeed. Bit Gold, b-money and RPOW suffered from some loose ends in their designs, in particular regarding the establishment of a universally accepted ledger without relying on trusted parties, while controlling inflation proved to be a challenge as well.

Yet, Szabo, Finney and Dai probably hadn’t wasted their time.

Satoshi Nakamoto almost certainly took inspiration from their projects — and learned from their mistakes. When designing Bitcoin, he solved the inflation problem by applying proof of work for currency creation more indirectly and leveraged that same proof of work for a trusted consensus system. It resulted in a digital cash system that offered both a degree of privacy as well as a free-market alternative to State-imposed monetary policy.

Almost 20 years since the Extropians started discussing digital currency, Satoshi’s electronic cash system represents the realization of a key step toward achieving their techno-utopian dreams. If the Extropians were right, Bitcoin will, in the words of Nick Szabo, “make Earth a free and prosperous place, an extropian planet [where] space colonization will emerge.”

Bitcoin price rallies to $32.3K, but three factors could limit its recovery

Bitcoin price rallies to $32.3K, but three factors could limit its recovery

BTC bulls pressed the price to $33,300, but significant tailwinds in traditional markets could continue to weigh on Bitcoin price.

Bitcoin (BTC) price action has been surprisingly bullish since May 27. Weekends, especially holiday weekends, are notoriously volatile and indecisive, with major whipsaws in price movements being the norm. Even in bull markets, bearish price action is often the norm, but BTC bucked that trend. 

BTC/USD daily chart (Coinbase) Source: TradingView

Bitcoin rallied nearly 11% between May 27 and May 30, moving through the critical $28,600 level to move back above $30,000 to $31,700. The weekly close was the highest close of the past twenty days and it gave bulls the strongest three-day run in over two months. However, macroeconomic fears may weigh on any further upside potential. 

Global food shortage fears mount at commodities prices rise

The global food supply is a primary yet easily overlooked factor contributing to Bitcoin’s future price potential. Since the beginning of the COV-19 pandemic, governments worldwide have shut down their seaports and airports, effectively cutting off and interrupting the flow of goods. This disruption will take years to return to normal, but that is not the primary cause of concern.

In the United States, fertilizer costs have risen exponentially over the past 18 months. In January 2021, the Fertilizer Price Index stood at $78.83 and is currently at $254.97, increasing nearly +225%. A combination of supply chain disruptions and continued shortages is likely to continue disrupting this market.

Fertilizer price index Source:

Individual commodity prices continue to rise and are a primary contributor to the steady rise in inflation. In particular, wheat (CBOT: ZW) hit new all-time highs in February 2022 and remains near those all-time highs. In just 2022, alone, wheat futures have increased as much as 76% and over 143% in the past 18 months. 

Wheat futures (ZW) weekly chart (CBOT) Source: TradingView

Oil futures (NYMEX: CL) continue to rise and are now trading at levels not seen since July 2008. There are broad concerns by traders and investors that oil may spike toward $150 per barrel once China ends its COVID shutdown. When that occurs, demand will most certainly return and further impact oil.

Crude oil futures (NYMEX). Source: TradingView

Growth concerns in the stock market

Equity markets around the globe continue to face significant pressure. Rising inflation, soaring commodity costs, supply chain disruptions and the conflict in Ukraine have put risk-on investors and traders on the defensive.

Several high-impact economic events are scheduled to occur this week, which will likely pause any major price action moves in equities and cryptocurrencies. The European Union unemployment data release comes on June 1, along with the Bank of Japan’s interest rate decision and manufacturing data. In addition, U.S. unemployment numbers and non-farm payroll data will be released on June 3.

Adding to a busy week, on June 3, three former U.S. Federal Reserve residents are also slated to speak: John Williams and James Bullard talk on June 1, Lael Brainard on June 3.

Technical levels may limit Bitcoin’s recovery to $37,000

Bitcoin is coming off a new historical record of nine consecutive weekly losses. Since the beginning of the current weekly candlestick, buyers have returned and have pushed BTC above the entire trading range of the past two weeks and well above the 50% range of the flash crash on the May 9, 2022 weekly candlestick.

If Bitcoin price can close above the daily Kijun-Sen at or above $31,350, then BTC has a very open path to hit the $37,000 value area. Additionally, the 2022 volume profile is very thin, between $32,000 and $37,000. But $37,000 may be where the bulls face sellers again.

BTC/USD daily Ichimoku Kinko Hyo chart. Source: TradingView

If bulls want to send a message to the market that a new uptrend is about to begin, then they will need to push Bitcoin price to a daily close near $44,000. In that scenario, BTC would trigger an “ideal bullish Ichimoku breakout,” giving bulls the path needed to retest the all-time high.

While stock prices remain in bear market territory and commodities remain at all-time highs, at the very least, a temporary reversal is likely to occur. If the old technical analysis adage, “volume precedes price,” plays out again, traders should see food commodities and oil sell-off while stocks and Bitcoin rise.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

Russia Is Open To Bitcoin, Crypto For International Payments

Russia Is Open To Bitcoin, Crypto For International Payments

A senior official from the Central Bank of the Russian Federation said it is open to using bitcoin and other cryptocurrencies for international payments.

  • The central bank of Russia is open to allowing the use of bitcoin and other cryptocurrencies for international payments.
  • A senior official for the bank explained that it still believes that risk for Russia could be “reasonably large.”
  • Russia has experienced a lot of turbulence on the matter of bitcoin and mining this past year.

The Central Bank of the Russian Federation is open to allowing the use of bitcoin and other cryptocurrencies for international payments, according to a report from Reuters.

“In principle, we do not object to the use of cryptocurrency in international transactions,” said first deputy governor of the central bank, Ksenia Yudaeva.

However, the financial authority’s open-mindedness only stretches so far.

Yudaeva continued to explain “We still believe that the active use of cryptocurrency within the country, especially within Russia’s financial infrastructure, creates great risks for citizens and users. We believe that in our country those risks could be reasonably large.”

The continued Russian debate on not only the use of currencies like bitcoin, but also the process of mining bitcoin have become hot-button topics over the last year. Just this January, the central bank proposed a blanket ban on mining bitcoin.

Russia’s President took the opposing position of the central bank stating “Although, of course, we also have certain competitive advantages here, especially in the so-called mining,” referring to the nation’s natural climate and energy surpluses.

The Russian government proposed a bill seeking to regulate bitcoin and other cryptocurrencies. At the time, Andrey Lugovoy, first deputy head of the Committee on Security and Anti-Corruption for the State Duma, the federal assembly of the Russian Federation, said:

“When we talk about digital financial assets, about cryptocurrency, about the crypto market, we must understand that we are not just trying to amend certain bills, we are trying to regulate a new entity that the whole world is facing, and we must determine our position.”

Russia’s Ministry of Finance followed the government’s proposal with a bill of its own which intended to respect the Bitcoin ecosystem and empower those operating businesses within the space by assigning regulatory practices. Now, some members of the Russian Federation believe bitcoin is only a matter of time.

Denis Manturov, Minister of Industry and Trade of the Russian Federation, offered his opinion on May 18:

“The question is when it will happen, how it will happen and how it will be regulated. Now both the Central Bank and the government are actively engaged in this.”

Binance Staking completes initial phase of Terra 2.0 airdrop as ecosystem issues persist

Binance Staking completes initial phase of Terra 2.0 airdrop as ecosystem issues persist

About 70% of tokens are held in escrow and will be vested starting later this year.

On Tuesday, cryptocurrency exchange Binance said it completed the first stage of airdropping new Terra Luna (LUNA) tokens to holders of Terra Luna Classic (LUNC), TerraUSD (USTC) and AnchorUST (aUST). 

The distribution was based on "pre-attack" and "post-attack" snapshots of token holders taken at LUNC block height 7,544,910 at 14:59:37 on May 7, 2022 UTC and block height 7,790,000 at 16:38:08 on Thursday, respectively. As told by Binance, users received new LUNA tokens based on the compensation scheme outlined by Terra developers: 

  1. Pre-Attack 1 aUST = 0.01827712143 LUNA
  2. Pre-Attack 1 LUNC = 1.034735071 LUNA
  3. Post-Attack 1 USTC = 0.02354800084 LUNA
  4. Post-Attack 1 LUNC = 0.000015307927 LUNA

At the pre-attack time, one aUST had a value of $1.24 while one LUNC was worth approximately $75. At the post-attack time, one USTC and one LUNC were worth $0.0632 and $0.0001434, respectively. At the time of publication, each LUNA token is worth $9.25. Regardless of timestamp, approximately 30% of LUNA tokens were distributed on the spot, while the remaining 70% will be distributed monthly in a vesting schedule starting later this year, in accordance with Terra's reformation plan

Additionally, users who staked their USTC via Binance Staking pre-attack were also eligible for the airdrop. As it turns out, users' USTC assets were staked on-chain, with aUST as the yield-bearing token. Binance launched USTC staking only a month prior and ended the program shortly after the implosion of the Terra Luna Classic ecosystem. 

Related: Luna Classic pricing error leads to Mirror Protocol exploit

Despite the successful airdrop on Binance, it appears that the token distribution did not go as smoothly as expected for crypto enthusiasts holding Terra assets in self-custodial wallets. Terra developers said that some users received less LUNA than expected from the airdrop and are actively working on a solution. The same day, a LUNC pricing error appears to have caused another exploit that potentially drained Mirror protocol, which is built on Terra, of all its funds. 

'Mega bullish signal' or 'real breakdown?' 5 things to know in Bitcoin this week

'Mega bullish signal' or 'real breakdown?' 5 things to know in Bitcoin this week

A bullish reversal into the new week rapidly gains attention but sober analysts predict that this is just another relief bounce.

Bitcoin (BTC) is bouncing back this week as a sudden surge challenges weekly highs.

In what should provide some desperately needed confidence to bulls, BTC/USD is back at weekly highs on May 30, gaining several percent overnight.

In contrast to recent weekly closes, the May 29 candle managed to limit downside and reverse course immediately as the new week began.

Nonetheless, Bitcoin has now sealed nine red weekly candles in a row, something never seen before in its history.

Just how bearish is the largest cryptocurrency going into June? The macro environment remains troubled, retail interest is nowhere to be seen and calls for a deeper capitulation remain.

That said, should it continue its latest strength, Bitcoin still stands a chance of breaking out of its current trading corridor.

Cointelegraph takes a look at the factors primed to move the market in the coming days.

Can Bitcoin avoid 10 weeks of red?

Thanks to an unexpected but welcome U-turn overnight into May 30, Bitcoin is breaking with tradition this week.

Asian trading provided the backdrop to some solid gains, with both Japan’s Nikkei and Hong Kong’s Hang Seng index up over 2% at the time of writing. The trigger came from news that China is planning to relax some of its latest COVID-19 restrictions, opening up the economy.

Bitcoin nonetheless outperformed equities prior to European trading getting underway.

After an initial red hourly candle following the weekly close, BTC/USD abruptly rose from $29,300 to current levels nearing $30,700, data from Cointelegraph Markets Pro and TradingView shows.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

While caution remains thanks to the weekly close still being red, Bitcoin could nonetheless end its nine-week losing streak this week as long as next Sunday’s closing price is at least $29,500.

For some, the overnight action alone has been enough to get noticeably more positive on the near-term outlook.

“Bitcoin on the verge of a mega bullish signal,” Jordan Lindsey, founder of JCL Capital,told Twitter followers.

“IMO not a time to be greedy looking for bottom ticks.”

Trader Crypto Tony noted that Bitcoin is still in a familiar trading range and should clear some key levels before being considered to have a firm trajectory. For him, this is $31,000, now not so far away.

Others focused on the idea of current gains being just another relief bounce and that Bitcoin should return lower afterward.

Popular trading account TMV Crypto meanwhile flagged the overnight lows as key support to hold going forward.

“Not sure if we should be very bullish here on BTC + ETH,” fellow trader and analyst Crypto Ed added in a Twitter thread released on the day.

He pointed to thin weekend volumes supporting the bounce, suggesting that higher levels did not have the bid interest required to cement themselves as new support yet.

“Saw some on my feed going short, which was understandable when seeing the weakness in the charts,” he continued.

“Once again a great example to be cautious over the weekend. Too often you get played on thin order books hence I prefer to not open new positions over the weekend.”

A CME futures gap left from Friday at $29,000 meanwhile provides a further bearish target.

CME Bitcoin futures 1-hour candle chart. Source: TradingView

Analyst: Stocks rebound is "bear market rally"

With United States markets closed for a public holiday on May 30, it will be up to Europe and Asia to dictate the day’s mood.

With the World Economic Forum behind them, crypto hodlers may be able to breathe a small sigh of relief going into the new month, prior to another U.S. Federal Reserve meeting in mid-June.

Asian stocks’ return to form after eight weeks of losses formed the major macro focus on the day.

After failing to take advantage of a similar rally in the U.S. last week, Bitcoin now appears to be capitalizing on the mood, which commentators nonetheless warn is likely not an indicator of an overall trend reversal.

Monetary tightening from the Fed and other central banks has not only got stock traders down, but has ignited talk of a major recession as the price economies pay.

“We are in the middle of a bear market rally,” Mahjabeen Zaman, head of investment specialists at Citigroup Australia, told Bloomberg.

“I think the market is going to be trading rangebound trying to figure out how soon is that recession coming or how quickly is inflation going down.”

The tightening is due to become real this week, June 1 is thought to be when the Fed begins reducing its balance sheet, currently at a record high of $8.9 trillion.

The European Central Bank (ECB) will halt its asset purchases later in the year, it revealed last week.

May 31 will further see consumer price index (CPI) data released for the Eurozone, ahead of similar data for the U.S. on June 10.

“Stock Investors watching for signs of stability,” markets commentator Holger Zschaepitz wrote on May 28 alsongisde the CBOE Volatility Index.

“Wall St’s fear gauge, investors’ sentiment & bond spreads are tracked for clues on where the market might go next. But only one of the 5 sentiment indicators suggests that the worst is over in the markets.”
CBOE Volatility Index. Source: Holger Zschaepitz/ Twitter

Dollar strength tags one-month lows

Coming to test support levels throughout the past week has been the strength of the U.S. dollar.

After surging to levels not seen since December 2002, the U.S. dollar index (DXY) is finally coming back down to Earth and even challenging its year uptrend.

This may still act as a silver lining for risk assets should the trend continue, as inverse correlation has worked in Bitcoin’s favor in particular in the past.

“This could just be the start of the bull run of 2022!” an emboldened Crypto Rover argued uploading a comparative chart showing the Bitcoin-DXY inverse correlation and how it played out in years gone by.

Bitcoin vs. DXY annotated chart. Source: Crypto Rover/ Twitter

Crypto Ed, however, is not convinced that the good times will be back courtesy of ongoing dollar weakness.

“DXY is printing a reversal pattern, a falling wedge. Another reason for not being too enthusiastic for BTC,” a further tweet added.

Nonetheless, at 101.49, DXY was at its lowest since April 25.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

Bitcoin nearing a “cyclic bottom”

Not everyone is bearish among Bitcoin analysts, and one of them, CryptoQuant CEO Ki Young Ju, has the data to prove why.

Uploading the latest readings from Bitcoin’s realized cap distribution, Ki argued that in fact, BTC/USD is currently at a similar stage to March 2020.

Realized cap reflects the price at which each bitcoin last moved, and can be broken down into age bands.

These in turn show the proportion of the BTC supply that makes up its realized cap which last moved a certain length of time ago.

Right now, 62% of the realized cap involves unspent transaction outputs (UTXOs) from six months ago or longer.

For Ki, this signifies floor territory for BTC price, as has been the case historically — and most significantly during the March 2020 COVID-19 crash.

“$BTC is getting close to the cyclic bottom,” he summarized.

“Now UTXOs over 6 months old take 62% of the realized cap. In the 2020 March great sell-off, this indicator reached 62% as well.”
Bitcoin realized cap UTXO bands vs. BTC/USD chart. Source: Ki Young Ju/ Twitter

CryptoQuant previously reported on UTXO data as it relates to the size of Bitcoin investor holdings, but drew more conservative conclusions.

Last week, it appeared that the largest Bitcoin whales were still distributing their holdings on-chain, while smaller whales could likely be propping up the market and preventing a March 2020-style cascade.

Sentiment hints at “long term buying opportunity”

It takes a lot of bullish price action to shift sentiment into the green in the current environment.

Related: Top 5 cryptocurrencies to watch this week: BTC, ETH, XTZ, KCS, AAVE

This goes for both Bitcoin and crypto more widely, as investors have endured over six months of what has been practically unchecked downside.

This remains the case this week — despite the overnight move up, sentiment remains firmly in the “extreme fear” zone across Bitcoin and altcoins.

The Crypto Fear & Greed Index is at just 10/100 as of May 30, a score which has accompanied generational price bottoms in previous years.

Crypto Fear & Greed Index (screenshot). Source:

May 2022 has been a particularly harsh period for sentiment, with Fear & Greed hitting just 8/100 earlier in the month — a level rarely seen and which last appeared in March 2020.

“Fear & Greed Index back down to 10 today,” Philip Swift, creator of on-chain analytics platform LookIntoBitcoin, responded.

“We have spent three weeks in Extreme Fear now with just sideways price action. Potential bottom forming?”

Commentator and analyst Scott Melker, known as the Wolf of All Streets, added that regardless of what might come next, sentiment revealed a “long term buying opportunity.”

“People are still becoming more fearful,” part of a Twitter post read.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tim Draper: Women will drive the next Bitcoin bull market

Tim Draper: Women will drive the next Bitcoin bull market

Famed crypto and tech investor Tim Draper believes the retail purchasing power of women, paired with Bitcoin acceptance at merchant stores, could send the asset to new highs above $250K.

Renowned billionaire investor Tim Draper insists that a time will come when women begin driving up the price of Bitcoin as more retailers start offering it as a more cost-effective payment option at shops.

Draper, a Bitcoin (BTC) investor himself, told host Scott Melker on the Wolf of All Streets YouTube show last week that women could be key in pushing the largest crypto by market cap up to $250,000 per coin.

He reasons that as store owners begin to accept BTC as payment more widely, “all of a sudden, all the women will have Bitcoin wallets and they will be buying things with Bitcoin:”

“Then you’re going to see a Bitcoin price that’ll just blow right through my $250,000 estimate.”

Draper believes it is in retailers’ best interest to begin accepting Bitcoin sooner than later. He acknowledges that most store owners operate on low margins, so the reduced transaction fees compared to working with major credit card companies Visa or Mastercard could increase BTC’s incentives.

The average credit card transaction costs merchants up to 2.9% in-store and 3.5% online per purchase, according to CreditDonkey. By comparison, the average BTC transaction fee comes in at a flat $1.4 per transaction, according to Bitcoin data compiler BitInfoCharts.

Draper hints that the benefit to retailers is obvious. He said that women “control about 80% of retail spending,” and that retailers can save a lot on fees paid to credit card companies by choosing Bitcoin. Women constitute 30% of all crypto owners in the United States, according to The State of Consumer Banking & Payments by research firm Morning Consult.

Related: Hodler's guide to travel: Which platforms accept cryptocurrency?

The level of adoption that Draper hopes for may not be far off, as Morning Consult found that about 24% of American households own crypto, which is up 2% from July 2021.

If Draper is right, then it could start a cascade event which would also validate Mastercard CEO Michael Miebach’s prediction that the global payments system SWIFT would not exist in five years. Miebach made the shocking prediction last week at the World Economic Forum in Davos.

Nifty News: ‘Blue-chips’ halve in value, free-to-mint Goblintown NFT volume surges

Nifty News: ‘Blue-chips’ halve in value, free-to-mint Goblintown NFT volume surges

Data on the most well recognized nonfungible token projects show that key metrics have fallen with floor prices and market capitalization over the past month.

“Blue-chip” nonfungible token (NFT) collections have seen their floor prices and market capitalization slide over the past 30 days, with some of the most well-recognized projects halving in value for these key metrics.

Data collected on key Ethereum NFT projects by DappRadar shows the floor prices of established collections such as CryptoPunks, Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC) and Moonbirds are at most down around 55% over 30 days.

The MAYC is the worst off of the four, with the floor price diving 55% to 16.7 Ether (ETH), or $31,300 at the time of writing. The more popular BAYC has fallen over 47% to 86.7 ETH, or $163,000, and CryptoPunks by almost 49% to 45 ETH, $85,000.

The only collection to gain in the month was Moonbirds, up 22% with a 19.6 ETH floor price, roughly $37,000 at the time of writing.

While the floor price for Moonbirds may be up, its market cap has fallen 55% to $368 million. The others have also tumbled, with the biggest losses being the MAYC, down over 71% to under $610 million, while BAYC and CryptoPunks were down 62% and 51%, respectively.

Despite the falling metrics, the collections still continue to dominate the top NFT sales over the past 30 days, with the most expensive being a BAYC NFT sold for 410 ETH on May 5, worth about $1.2 million at the time.

Free-to-mint collection tops charts

A free-to-mint NFT collection called Goblintown launched on May 22, now commands a nearly $50 million market cap and is in the top 30 NFT collections.

Despite the website stating that the NFTs have “No roadmap. No Discord. No utility,” Goblintown is in second place for volume over the last seven days at nearly $23 million, according to DappRadar, beating out collections such as Otherdeeds and the Bored Ape Yacht Club.

The collection features 9,999 goblins, which debuted without any real marketing, fanfare or the usual hype-building for an NFT project. The team behind Goblintown is not known and often post seemingly nonsensical and crude tweets from the official Twitter account.

Despite all of these factors, the floor price of the collection was 2.7 ETH, or around $5,000, on NFT marketplace OpenSea at the time of writing. The most expensive NFT sold from the collection has fetched a price of 69.4 ETH, or about $130,000.

Nike scoops ENS domain

RTFKT, pronounced “artifact,” the Web3 arm of sportswear and sneaker giant Nike, has added an Ethereum Name Service (ENS) domain to the company’s repertoire, purchasing “dotswoosh.eth” for 19.72 ETH, about $37,000 at the time of writing.

Related: NFT 2.0: The next generation of NFTs will be streamlined and trustworthy

While it’s unclear what use Nike will put the domain to, the company has been investing in Web3 through the creation of multiple sneaker-based NFT collections with RTFKT, and has defended its claim to the space, taking a reseller of Nike NFT sneakers to court.

The purchase of this latest ENS domain brings the total owned ENS domains by the company to ten.

More Nifty News

The popular move-to-earn NFT game STEPN has banned users in China from its app to adhere to Chinese regulations. Mainland Chinese users make up 5% of the platform’s overall user base and STEPN’s founder has said the move will not have a significant impact on the firm’s finances.

The community for a Solana-based NFT game has dished out payback to a scammer after the developer of the game raised royalties to 98% on a batch of NFTs stolen in a Discord hack phishing scam. Community members bought back the NFTs to return them to their original owners while the hacker made a measly 2% on each sale.

Investors dumping on Terra as LUNA 2 tanks 70% in two days

Investors dumping on Terra as LUNA 2 tanks 70% in two days

“Zero plans to buy luna 2.0, but I will dump any airdrop if I get something on Binance,” said Lark Davis.

The price of LUNA has tanked around 70% since the re-launch of the Terra ecosystem via Terra 2.0 on May 28.

Under the revival plan of Terraform Labs founder Do Kwon, new LUNA tokens (also referred to as LUNA 2) are being airdropped to investors that previously held Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST (aUST).

According to data from CoinGecko, LUNA has dropped roughly 69% since its opening of $18.87 on Saturday to sit at around $5.71 at the time of writing.

LUNA/USD chart: CoinGecko

At this stage, the sharp plummet seems to suggest a relative lack of faith in Do Kwon’s revamp moving forward, with many investors indicating on Twitter that they are instead looking to recover a small portion of their previously lost capital and wipe their hands clean of the project.

Binance is set to begin a multi-year distribution of LUNA to eligible users starting from May 31, along with listing the token for trading via its Innovation Zone, a dedicated trading zone for volatile and high-risk assets.

Some people in the community who have outlined plans to eventually purchase LUNA once the carnage is over such as “lurkaroundfind” have predicted further bloodshed once the Binance drop goes live.

Related: Bitcoin price stuck below $29K as Terra comes back from the dead

They pointed out that Binance has "15.7MM liquid LUNA, which will be available to users on Tuesday” and suggested that investors who mainly used the Anchor Protocol will look to cash out as they have no real interest in the Terra ecosystem.

Popular influencers in the space such as Lark Davis have also noted such, telling his 988,000 Twitter follows yesterday that:

“Zero plans to buy $luna 2.0, but I will dump any airdrop if I get something on Binance.”

Market cleansing bear cycles are healthy say industry experts

Market cleansing bear cycles are healthy say industry experts

Analysts say the crypto bear market should not be feared because it offers potentially greater opportunities for growth and profits than a bull market, so traders should be taking note.

Crypto markets are undeniably bearish, but some industry insiders believe these conditions will shake out the bad actors and create greater opportunities for future participants.

Traders tend to lament the negative price action and relative difficulty in executing profitable trades in bearish market conditions. However, several leading analysts and builders agree that this is the time to make moves that will lead to the greatest gains when bullish sentiments return.

Polygon (MATIC) co-founder Mihailo Bjelic told CNBC on May 27 that the current downturn and recent major sell-off earlier this month were just what the market needed.

Bjelic believes that the market became “maybe a little bit irrational, or maybe a little reckless,” as the total crypto market cap grew by 12.5 times between November 2019 and November 2021, a tremendous growth rate that outpaced most other traditional markets.

“When the times like that come, [a] correction is normally needed, and at the end of the day [is] healthy.”

The market is in the midst of a major correction at the moment. Since last November, total market cap has dropped by 60% from $3 trillion to $1.2 trillion according to CoinGecko. Cointelegraph reported on May 28 that traders still expect more pain, especially considering the last bear market drew prices down about 80% overall.

Crypto market analyst The DeFi Edge added context to the idea that bear markets carry benefits that remain in line with the interests of most market actors. The account tweeted to its 164,000 followers on May 29 that “bear markets are healthy for the growth of crypto.”

This line of reasoning is based on the observation that fewer new market participants, which scammers see as potential targets, enter during a bear. Over the last year, Bitcoin (BTC) transaction volume peaked on Nov. 9 at 335,411, coinciding with the peak in price. On May 29, transaction volume was down by 38% to only 207,859 according to

Lower activity means less opportunity and reduced profitability to run many scams, so they tend to disappear.

Jason Ye, partner at crypto investment fund ROK Capital explained that although prices and activity are lower, bear markets represent prime times for traders and builders to lay the foundation for greater success when market sentiments reverse. He told Cointelegraph on Monday that “In a bear market, it is time to find the best fundamentals and focus on building a product.”

“It's time for traders to deploy their cash reserves in order to get an upside in the next bull cycle. As always, the winners in the bull market are the people who built in the bear market.”

Game Maker at Metaverse game platform Neo Tokyo, Alex Becker, echoed Ye’s notion in a tweet on May 28. He also believes that bear market buyers are the ones in the best position to turn a profit during the next bull. He said that “all the money is made buying in a bear market. Most losses come from buying in a bull market.”

Related: Small Bitcoin whales may be keeping BTC price from 'capitulation' — analysis

Becker added that although buying low and selling high should be the key factor driving crypto market participants, he suggested that people on Twitter are the most disagreeable during a bear market, which he called “ironic.”

Top 5 cryptocurrencies to watch this week: BTC, ETH, XTZ, KCS, AAVE

Top 5 cryptocurrencies to watch this week: BTC, ETH, XTZ, KCS, AAVE

Bitcoin is attempting to form a higher low at $28,630 and if that happens, ETH, XTZ, KCS and AAVE may rally in the near term.

After declining for eight successive weeks, the Dow Jones Industrial Average rebounded sharply last week to finish higher by 6.2%. However, Bitcoin (BTC) has not been able to replicate the performance of the United States equities markets and is threatening to paint a red candle for the ninth week in a row.

A positive sign is that Bitcoin whales have been buying the market correction. Glassnode data shows that the number of Bitcoin whale wallets with a balance of 10,000 Bitcoin or more has risen to its highest level since February 2021. The accumulation in the whale wallets suggests that their long-term view for Bitcoin remains bullish.

Crypto market data daily view. Source: Coin360

Blockware Solutions highlighted that the Mayer Multiple metric which compares the 200-day simple moving average with the current price was languishing “near some of the lowest readings on record.” The firm said a few other indicators also suggest that Bitcoin is attempting to form a bottom.

If Bitcoin starts a recovery in the short term, certain altcoins are likely to follow it higher. Let’s study the charts of the top-5 cryptocurrencies that may lead the relief rally.


Bitcoin remains stuck inside a tight range between the downtrend line and the support at $28,630. The bears pulled the price below $28,630 on May 26 and May 27 but could not sustain the lower levels. This resulted in a rebound on May 28.

BTC/USDT daily chart. Source: TradingView

The bulls will now try to push the price above the downtrend line and challenge the 20-day exponential moving average ($30,538). If they succeed, the BTC/USDT pair could pick up momentum and the rally could reach the 50-day SMA ($35,181).

The positive divergence on the relative strength index (RSI) suggests that the bearish momentum could be weakening and a rally may be around the corner.

On the other hand, if the price turns down from the overhead resistance, the bears will again try to pull the pair below $28,630. If they manage to do that, the pair will complete a bearish descending triangle pattern, which has a target objective at $24,601.

BTC/USDT 4-hour chart. Source: TradingView

The 20-EMA and the 50-SMA on the 4-hour chart have flattened out and the RSI is just above the midpoint, suggesting a balance between supply and demand.

If bulls drive the price above the downtrend line, the negative descending triangle pattern will be negated. That could result in a short squeeze as the short-term bears may close their positions. That could clear the path for a possible rally to the 200-SMA.

Conversely, the bears will come out on top if the price turns down and plummets below $28,630. That could result in a retest of the crucial support at $26,700.


Ethereum (ETH) has been in a downtrend but the bulls are attempting to stall the decline at the crucial support of $1,700. The price rebounded off this support on May 28 and the bulls are attempting to build on the recovery on May 29.

ETH/USDT daily chart. Source: TradingView

The RSI is forming a bullish divergence, indicating that the downtrend may be weakening. If bulls push the price above the 20-day EMA ($2,036), the ETH/USDT pair could rise to the overhead resistance at $2,159. The bears are expected to defend this level aggressively. If the price turns down from this resistance, the pair may remain range-bound between $2,159 and $1,700 for a few days.

On the other hand, if the price turns down from the current level or the 20-day EMA, the bears will again attempt to sink the pair below $1,700. If they succeed, the pair may resume its downtrend with the next major support at $1,300.

ETH/USDT 4-hour chart. Source: TradingView

The bounce off the $1,700 support has reached the 20-EMA where the bears may mount a strong defense. If the price turns down from this level, it could enhance the prospects of a break below $1,700. If that happens, the downtrend may resume.

Conversely, if bulls push the price above the 20-EMA, the pair may rise to the 50-SMA. This level may again act as a resistance but if bulls clear this hurdle, the pair could rally to the psychological resistance at $2,000.


Tezos (XTZ) is consolidating in a downtrend. Although bulls pushed the price above the 20-day EMA ($2) on May 24, they could not sustain the recovery. The price dipped back below the 20-day EMA on May 26.

XTZ/USDT daily chart. Source: TradingView

The 20-day EMA is flattening out and the RSI is above 46, suggesting that the selling pressure is reducing. If bulls push the price above the 20-day EMA, the XTZ/USDT pair could rally toward the 50-day SMA ($2.45). If this resistance also gives way, the buyers will attempt to push the price above the uptrend line.

In contrast, if the price turns down from the current level, it will suggest that bears continue to defend the 20-day EMA. The sellers will then attempt to sink the pair below $1.75 which could open the doors for a fall to $1.64.

XTZ/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the recovery turned down from the 200-SMA but the pair bounced off the uptrend line. The bulls have pushed the price above the 50-SMA and will now attempt to clear the overhead hurdle at the 200-SMA. If they manage to do that, it will suggest the start of a short-term up-move.

Alternatively, if the price turns down from the current level or the 200-SMA, the pair may drop to the uptrend line. A break and close below this support could pull the price down to $1.61.

Related: Bitcoin to set a new record 9-week losing streak with BTC price down 22% in May


KuCoin Token (KCS) broke above the 20-day EMA ($15.61) on May 20 but the bulls could not push the price above the 50-day SMA ($17.19). This may have tempted short-term traders to book profits, which pulled the price back below the 20-day EMA on May 26.

KCS/USDT daily chart. Source: TradingView

The bears could not build upon their advantage and sustain the price below the 20-day EMA, indicating strong buying by the bulls at lower levels. The buyers have pushed the price back above the 20-day EMA on May 29.

If bulls sustain the price above the 20-day EMA, the possibility of a break above the 50-day SMA increases. If that happens, the KCS/USDT pair may rally to $18.44 and later to the 200-day SMA ($19.63).

Contrary to this assumption, if the price turns down from the current level, it will suggest that traders are selling on rallies. A break and close below $14.92 could open the doors for a further decline to $12.90.

KCS/USDT 4-hour chart. Source: TradingView

The pair has been facing stiff resistance at the 200-SMA but the shallow correction indicates that bulls are buying on minor dips. If bulls push the price above the 200-SMA, the next stop could be $17.14. A break and close above this level could start the next leg of the up-move.

Conversely, if the price turns down from the overhead resistance, the bears may pull the pair down to the 38.2% Fibonacci retracement level at $14.20 and then to the 50% retracement level at $13.30. This zone is likely to act as a strong support.


AAVE rallied to the 20-day EMA ($101) on May 23 but the bulls could not push the price above it. This suggests that bears continue to defend the level aggressively but a minor positive is that the buyers have not given up much ground.

AAVE/USDT daily chart. Source: TradingView

If the price turns up and breaks above the 20-day EMA, it will indicate the start of a stronger relief rally. The AAVE/USDT pair could then rally to the 50-day SMA ($132) where the bears may again mount a strong defense.

Alternatively, if the price turns down from the current level or the 20-day EMA and breaks below $89, the short-term bulls who may have purchased at lower levels could close their positions. That could pull the price down to $79 and later to $64.

AAVE/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been oscillating between $90 and $110 for some time. The 20-EMA and the 50-SMA are flattish and the RSI is just above the midpoint, suggesting a balance between supply and demand.

This equilibrium could tilt in favor of buyers if they push and sustain the price above $110. If they do that, the pair could rally toward $130 and then $143. Conversely, if the price plummets below $90, the bears will gain the upper hand. The pair could then decline to $80 and later to $70.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.