Bitcoin is under pressure and most major cryptocurrencies are testing critical support levels.
Some U.S Banks Limit Credit Cards for Cryptocurrencies, China Acts Again
Cryptocurrencies have seen another deluge of selling. After stabilizing early Friday, the market was hit with news from a handful of major U.S banks who said they will no longer allow their credit cards to purchase cryptocurrencies. And developing news in China this morning indicates – not only a limit on cryptocurrency trading within the country but that the nation is seeking ways to stop its citizens from participating in Initial Coin Offerings outside of China too. Bitcoin has been under pressure early today, along with the other major cryptocurrencies as key support levels are being tested. Bitcoin is trading at $7625 at the time of writing, Ripple dropped 16.29% to trade at $0.744.
High Anxiety in Ethereum Show Nervousness, Widespread Concerns
Ethereum is below 800.00 U.S Dollars per coin in early trading on Monday. The price of Ether is a strong indication sentiment in all cryptocurrencies are facing widespread anxiety. Support for Ethereum is near 620.00 U.S Dollars, but if this mark is broken – the next level of support could be around 400.00. Ethereum is still above its December price levels but has seen weak demand the past seven days, while resistance above appears to be 1100.00 U.S Dollars per coin.
Recent Developments Raise Questions, Positive Capabilities Remain
The recent developments in the States regarding cryptocurrencies and credit cards and the rumors from China has increased concerns which have hurt prices. However, the question which needs to be answered is how governments will supervise this new industry, which is finding new ways to implement Blockchain technology on a daily basis without killing its potentially positive influence on enterprises and financial institutions? As this question hovers, turbulence will remain.
Dubai Event Late February will focus on Blockchain
The United Arab Emirates has announced over 400 industry leaders will participate in a FinTech conference in Dubai later this month which will focus on Blockchain.
- 26-27th, UAE, Finovate Middle East in Dubai
Yaron Mazor is a senior analyst at SuperTraderTV.
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