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Cryptocurrency (Coins)

Tether (USDT): High Trading Volume StableCoin Crypto Pegged to USD?

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About Tether USDT

In a smart pitch for a definite niche, the altcoin Tether is following a middle way towards consumers’ hearts. A decentralized digital currency that is nonetheless backed by the USD, the coin finds a sweet spot with many more traditional investors.

While inane to some enthusiasts, enjoying the benefits of the decentralized blockchain ledger and the familiarity of a known fiat currency offers users the best of both worlds, it seems.

An altcoin backed by a fiat grants the ease of the consensus protocol as well as the stability of a traditional asset. Tether Limited has built in a mechanism to maintain a value fixed to the USD. With the Tether (USD₮) coin, Proof of Reserves and other auditing methodologies are at play, enabling a cryptocurrency constantly on a par with the USD.

How Is Tether (USDT) Better?

For many, the mere idea of a “backed” altcoin is absurd and anathema to the whole idea. For possibly many more with money to invest, finding a middle route that allows them to join the cryptosphere with the usual reassurances is welcome.

Blockchain transactions are eminently better in many ways for users. Fiat transactions are slow – sometimes taking days – and affected by exchange fluctuations. While Bitcoin and others should ostensibly be providing lightning speed and an unrivaled stability, right now either option comes with liabilities.

That said, imagining a future where cryptocurrencies are known and stable assets, Tether seeks a jump start on that reality by pitching a backed coin that carries all of the blessings and none of the hassles. In any modern digital transaction, speed and thus value stability is improving.

User issues arise when people seek to cross platforms when transacting, usually settling accounts or making deposits. So while a vendor may have both USD and a cryptocurrency with which to pay, the variances in the currencies preclude him from conducting his business and settling as he sees fit.

Tether aims to eliminate this entirely by being an altcoin with a dollar value. Supported by the Omni Layer protocol, Tether is issued on a one-to-one ratio with held dollar reserves. The coin can be spent or stored or traded, as with any other digital currency.

What is Tether Imagining?

Tether is typically expressed in USD, but the coin also trades on euros, with Japanese yen (JPY) soon to be added to the list of supporting currencies. The very name “Tether” implies the known, stable nature of the coin, tethered as it is to the fate of the U.S. dollar.

As opposed to a merchant having to find a counterpart who will accept his more efficient way of paying but one that involves digital currency, Tether imagines a world where they have taken the unknown out of the transaction. By offering Tether for payment, any vendor anywhere in the world will immediately know its value in dollar terms and hence not hesitate to accept it as payment. More perhaps than a transition from old to new, the Tether model my well persist, as it does represent a painless middle way for businesses all across the globe.

The coin is a stable currency and is a route to easily converting fiat into digital money. Although two or three prime currencies are accepted as supporting currencies, one Tether coin is always equal to $1. The company publishes a pleasingly transparent Tether Reserve holding figure daily, and issued Tether coins are tied strictly into held reserves, by number.

The coin could well represent the most applicable means of integration needed to marry traditional business with the cryptosphere. Rich in blockchain technology and also rich in reserves of probably the best-known fiat in the world, the coin leverages the security and trust of the decentralized ledger.

Tether is not alone. Possible advantages Tether has over other such backed altcoins include its tremendous flexibility to cross platforms, its risk-averse focus that sees the company acting as custodian of value and its ability to please without liquidity constraints. Users get the benefits of rapid transactions that also come with low charges.

Not only merchants, but exchanges too can benefit from Tether’s ability to address the following common issues:

  • The problem of a currency conversion fee
  • The difficulty of finding the right payment providers
  • Exorbitant costs on low value transactions
  • Exchange integration with banks that have no usable API
  • Time delays in clearing international wire transfers

Tether also trumpets its ability to add an additional layer of security for existing exchange users. By employing the coin, users can avail themselves of watertight security and also avoid having to store loads of fiat on an exchange. For individual users, Tether represents the same fluidity as digital wallets are providing, but with a known value.

Moreover, the coin claims to represent the security of fiat with the anonymity of altcoins, something sure to be tested down the line. One interesting feature of the coin can be expressed is the fact that users can now store a real dollar value in the form of a crypto-wallet.

Tether allows merchants to cost goods and services in USD, although it’s an altcoin. In addition, both the features of fiat and those of cryptocurrency can be leveraged to enable a greater business fitness, particularly when transacting. Reduced fees and greater reassurance through tighter proofs are further business benefits that appeal to many companies.

Tether (USDT) Conclusion

Tethered on a one-to-one ratio with the USD and free of the impact of market forces pertinent to altcoins, the currency has wide application. The mining protocol so typical of many digital currencies is absent with Tether, as mining would jar against the fundamental nature, construct and purpose of the backed altcoin. One Tether is always equal to one dollar.

Unlike Bitcoin and most other digital currencies, Tether coins are supported by a reserve of fiat currency held as such by Tether Limited. Bitcoin was indisputably created to become an alternate currency and to operate as such beyond the reach of banks, governments or a nation’s borders.

Tether, on the other hand, was created to integrate blockchain technology with existing fiat currencies. The coin essentially converts cash into a digital asset. Enjoying the best of both worlds as it is, the token should experience appreciable adoption as it concentrates on integrating existing business into the cryptosphere.

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Ethereum (ETH)

Ethereum Price Analysis: ETH Approaching Significant Support Area

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Ethereum Price Analysis ETH Chart

There was another rejection noted near $265.00 in Ethereum vs the US Dollar. ETH/USD is currently declining and approaching towards a couple of important supports near $254.00 and $250.00.

Key Takeaways: ETH/USD

  • Ethereum price formed a short term top near the $264.4 level and declined against the US Dollar.
  • ETH/USD is currently approaching the $254.00 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price remains in an uptrend and it could accelerate gains above the $8,300 level.

Ethereum Price Analysis

Recently, bitcoin price gained momentum and broke the $8,100 and $8,200 resistance levels. However, Ethereum price failed to gain traction and formed a short term top near the $264.4 level.

Looking at the 2-hours chart, Ethereum price started a downside correction from the $264.41 high and declined below the $260.00 level. There was a break below the 23.6% Fib retracement level of the last rally from the $236.89 to $264.41.

Ethereum Price Analysis ETH Chart

Besides, there was a break below the $258.00 level, but the price found support near $255.00. Moreover, the price is approaching the $254.00 support and a bullish trend line on the 2-hours chart.

Below the trend line, the main support is near the $250.20 level and the 50 simple moving average (2-hours, purple). The 50% Fib retracement level of the last rally from the $236.89 to $264.41 is also near the $250.65 level to act as a support.

If there is a downside break below the $250.00 support, the price could extend losses and decline towards the $243.50 zone. The 76.4% Fib retracement level of the last rally from the $236.89 to $264.41 is also near $243.40.

Conversely, if the trend line support holds, the price is likely to start a fresh increase in the coming sessions. An initial resistance is near $260.00 and a connecting bearish trend line. A break above the $260.00 barrier might start a strong rally in Ethereum price above the $265.00 level.

Overall, ETH price is trading with a positive bias as long as it is above $250.00, and it could rise again above $260.00 and $265.00.

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Bitcoin (BTC)

Bitcoin Price Analysis: BTC Setting Up For Another Bull Run

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Bitcoin Price Analysis BTC Chart

After a major decline, bitcoin price started a solid upward move above $7,750. BTC to USD gained momentum above $8,000 and even spiked above the $8,250 resistance area.

Key Takeaways: BTC/USD

  • Bitcoin price formed a strong support above $7,550 and recently climbed higher against the US Dollar.
  • BTC/USD broke the main $7900 resistance and a couple of bearish trend lines on the 2-hours chart (data feed from Bitstamp).
  • Ethereum, ripple, and bitcoin cash also gained momentum and moved into a positive zone.

Bitcoin Price Analysis

After testing the $7,500 and $7,520 levels on multiple occasions, bitcoin price finally started a fresh increase. BTC started an upside reversal after it successful broke the $7,600 and $7,850 barriers.

Looking at the 2-hours chart, bitcoin even broke the main resistance near the $7,900 level to move into an uptrend. Finally, there was a break above the $8,000 level plus a close above the 50 simple moving average (2-hours, purple).

Bitcoin Price Analysis BTC Chart

During the rise, the price even broke the $8,150 resistance and a couple of bearish trend lines on the same chart. A new swing high was formed at $8,266 and the price is currently correcting lower.

It broke the $8,150 level and the 23.6% Fib retracement level of the recent wave from $7,903 to $8,266. However, the price is currently finding a strong buying interest near the $8,060 level.

The 50% Fib retracement level of the recent wave from $7,903 to $8,266 is also acting as a decent support. The main support is near the $8,000 level and a connecting bullish trend line on the same chart.

Therefore, bitcoin price is gaining pace and it remains in an uptrend as long as it is above $7,980 and the 50 simple moving average (2-hours, purple).

On the upside, an initial resistance is near the $8,100 level and a connecting bearish trend line. A successful close above $8,100 might start a strong rise in the coming sessions.

The next major hurdle for the bulls is near the $8,250 level, above which the price might start a rally towards the $8,500 level.

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Price Analysis

Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) Price Analysis June 10th

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Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) Price Analysis June 10th

BItcoin BTC/USD Forecast

Last Friday the price of Bitcoin came up for interaction with the first significant horizontal resistance at $8140. As the interaction ended as a rejection the price was propelled in a downward trajectory and came down to the levels of the prior low at $7576 which was a decrease of around 6.7%. From today's open which was around the mentioned prior low level, the price has increased by 5.43% with strong bullish momentum as the majority of the increase occurred in only one hour but we are now seeing the price struggling to keep up the upward movement slightly lower then on the prior high.

BTC-USD-Market-June-10

Click to see a full size chart

On the hourly chart, you can see that the price encountered resistance, indicated by the wick from the upper side of the last hourly candle and is now likely to keep interacting with the current level as it's retesting it for resistance further. If the price manages to keep up the upward movement we could see a breakout to the upside from the first significant resistance point and to the next on at around $8500.

This would be unlikely if the found resistance proves to be stronger then the currently seen bullish momentum as a rejection at the current levels would likely lead to a lower low below the one made on 5th at $7506. The price spiked to those levels on today's open but a proper interaction with a lower spike would likely occur if the increase was seen would be stopped out at the mentioned first significant resistance as it would mean that from last Thursday we have been seeing the development of the five-wave move to the downside out of the starting downtrend.

Litecoin LTC/USD Forecast

Last Friday the price of Litecoin increased by around 9.6% coming from $109.96 to $120.47 at its highest which has pushed the price above the first significant resistance level at the descending channels resistance. The price came down for a retest of support at the broken level over the weekend and as it found support it continued moving to the upside above the prior high level, coming to $126.8 at its highest point today.

LTC-USD-Market-June-10

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The price came above the 0 Fibonacci level which was the ending point of the prior high and above the next highly significant horizontal level at $122.32 above which it is considered to be the sellers' territory. I was expecting the price to start moving to the downside after an interaction with the first significant resistance at the descending channels resistance but as the price continued increasing further past the other significant resistance point we have likely seen the development of another five-wave move to the upside. As the move looks finished or near completion and especially considering that the price has entered the seller's territory I will be shortly expecting the start of the impulsive move to the downside.

Even though we have seen a five-wave increase I don't believe that its the starting upside wave, but is more likely the second correctional structure after the first one currently labeled as a WXYXZ correction ended. The price did make a higher high but this can also be seen on a corrective move usually ending as a running flat. If we are soon the see the start of an impulsive move to the downside the first significant support zone for the price of Litecoin would be at around $83 area.

Ethereum ETH/USD Forecast

The price of Ethereum has increased from today’s open at $228.8 by 6.59%, coming to $243.4 at its highest point today but has encounterd strong resistance there and is currently being traded slightly below those levels.

ETH-USD-Market-June-10

Click to see a full size chart

On the hourly chart, you can see that the price came down over the weekend below the prior low at around the vicinitly of the 4th wave’s ending point from the previous upside move where it found support as the price immediately started moving impulsively to the upside again.

The rise has been stopped out at the previous horizontal support which now serves as resistance but since a breakout occurred to form the descending triangle which was formed from 30th of May we are likely to see the increase continue for a bit longer before the price continues moving to the downside again.

If the descending triangle was the first structure out of the starting downward move, the increase seen from today could be viewed as a correctional upside move in which case it cannot exceed the 258 level which is around half range between the last Thursdays high and today’s open.

Bitcoin Cash BCH/USD Forecast

Over the weekend the price of Bitcoin Cash has decreased by 8.2% as it came down from $409.2 to $375.6 at its lowest point. From today’s open around the mentioned low level we have seen an increase of 5.36% to $395.7 but the price has encountered resistance as the rise has been stopped out.

BCH-USD-Market-June-10

Click to see a full size chart

On the hourly chart, you can see that the price decreased slightly above the last week’s low at $366.5 made on Wednesday which is why a lower low before the completion of the downward move would be expected if we are seeing the development of the five-wave move to the downside out of the starting downtrend.

If we are seeing the development of the 4th wave it cannot go above the $413 which the price interacted with over the weekend and found resistance there which makes this possibility higher. As the 4th wave is corrective in nature it could mean that today’s increase is still its development which we are to see from the currently encountered resistance interaction.

Conclusion

Over the weekend the prices have continued increasing to their first significant resistance point and have gotten rejected with the price going to the levels from which the increase was made. This movement could have been the end of the first wave from the starting downtrend but a more likely outcome would be that another lower low is coming before we see some major upside correctional movements.

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