Why India is a Game Changer for the Crypto Market?

I write to you from India, before hitting my trading desk at the start of a new week. Here in India, the annual budget by the Finance Minister, Arun Jaitley, has been interpreted by some as yet another death knell for Cryptocurrencies. They’re wrong. It’s the opposite.

Pioneers

India is one of the main countries that is pioneering the way to regulate cryptocurrencies. India is cracking down just like some of the other governments while still continuing to embrace the blockchain technology for its incredible encryption and the widespread technological benefits. While cryptocurrency may have delivered a product that is not deemed to be helpful for Indian business, the technology behind it is something being embraced in many industries.

India’s central bank issued a series of warnings quite recently on the process of cryptocurrency investment. Arun Jaitley only stated the obvious –  that the government would not be recognizing crypto as a legal currency, tender or coin. While these measures seem quite extreme, these are not a ban on the idea of cryptocurrency.

What Does It Mean for Investors?

The government will not be banning exchanges directly and there is very little chance that the government could actually penalize individuals that have cryptocurrency in any format as part of their portfolio. (6,7)

For Businesses

Businesses that were considering taking cryptocurrency may want to use caution as the government currently does not consider any type of cryptocurrency to be a legal tender under the announcement from Jaitley. Continuing to accept legal tender only recognized and defined by the RBI should be the best path moving forward. Accepting these types of payments and watching out for new blockchain technology solutions for e-commerce could be one of the best paths for your business as part of this announcement.

Why Has this Announcement Been Brought Forward?

One of the greatest reasons why this announcement was included as part of the finance announcements by Arun Jaitley starts with the basis for the current leadership. Prime Minister Narendra Modi, as well as the BJP party, won the hearts of the people in 2014 by focusing on an anticorruption based platform. Through this type of public popularity, the finance minister and his cabinet were likely to target corruption in cryptocurrency and online sales.

Another example of how the finance minister is working to improve the Indian economy comes with trends that started in 2016. Indian finance was dealt a catastrophic blow when the government authorized the withdrawal of all Rs 500 and Rs 1000  notes from circulation to remove the chance for “black money”. Though this move by the government left a giant gaping hole available for Bitcoin exchanges to take up the rest of the underground currency market, and with the threat of cryptocurrency set to take over this black money exchange within the market, many banks began to freeze accounts that were tied to Bitcoin exchanges across the country as part of a government order.

The problems, therefore, India is trying to solve, are global problems for all governments and cryptocurrencies and this is the first major government to give time and space in their annual budget speech. It is not a shutdown, but, how to work with this technology in a safe way for Governments.

Anyone who thought Bitcoin’s future relied on it being a money launderer’s paradise, never understood what actually is the reason so many people believe in Cryptocurrencies.

For brokers offering Contracts for Differences on Cryptocurrencies such as 24option – the interest of trading CFDs on Crypto remain unabated. This is hardly surprising given that good or bad news, it’s all in the headlines each week.

What would the Adoption of Cryptocurrencies Represent in India?

Mass adoption of cryptocurrency without regulation in India would most certainly lead to an extensive amount of corruption as well as a huge degree of civil unrest within the economy. If there is a mass adoption of cryptocurrencies online this would represent a shadow economy within India that would act parallel to the current economic structure as well as remove a massive amount of financial resources from an economy that has had recent problems maintaining their treasury.

Allowing the ongoing trade and adoption of cryptocurrency in India would represent a chance for corruption to skyrocket ensuring that every bribe given would be completely untraceable. Anyone involved with corruption could enjoy continuing to take advantage of the class divide and create complete lawlessness without the chance of state repercussion because of the total lack of regulation with the payment system.

According to a 2017 study performed by transparency international, 7/10 people that were accessing public services throughout India were forced to pay some type of bribe. By making items like these bribes completely anonymous, it could drive the cost of obtaining even basic services almost impossible for many people.

Why there is a Need for a Crackdown on Corruption?

Almost every basic service within India generally requires some type of small bribe. Whether you are grabbing a train ticket, securing a court date or even getting a license test. It’s estimated that 60% of people in India did not actually complete any type of test to acquire their drivers’ license but rather paid a bribe to get it instead.

Petty corruption is rampant even in basic services like healthcare, education and the judicial system. Many estimate that with 11 basic services in the government and a fairly standard corruption rate of 60%, the economy misses out on nearly 4.9 billion US dollars annually as a result of people having to pay small, petty cash bribes for fake tolls, healthcare, and the most basic of services.

Major companies can actually pay just as a larger contribution in siphoning money away from the economic prosperity of the country. The telecom industry was able to siphon away close to $30 billion in a 2G spectrum scam whereby licenses were granted to mobile phone companies through fake legislation the government was not even tied to. With some of the largest service providers even falling victim to corruption and manipulating markets across the country, having the ability to do this anonymously would only lead to greater problems within the country.

Why is it the Right Time to Introduce Legislation on Cryptocurrencies?

The signs of corruption and the mass adoption of cryptocurrency across India are beginning to be part of India’s financial system. Bitcoin was beginning to be used in increasingly astounding numbers for transfers across international borders as well as within the country itself.

Over the past few months, the spike of users has gone up to match the incredible gains that Bitcoin made with its value. With prices at an all-time high at the end of 2017, there were still a rapid number of new users brought in every month. The demand for bitcoin prices actually put the trading stocks in many Indian exchanges consistently higher than the prices that were found in the United States and worldwide. For the most part, this was due to the excessive demand as well as the capital control system.

The capital control system in India made it quite difficult for Indian citizens to purchase Bitcoins while they were outside of the country or operating a website outside of the country. Until an Indian Bitcoin platform known as Unocoin came along there was not a dedicated exchange that could begin to lower prices and as a result, many Indian users were purchasing their Bitcoins at premium rates.

Nevertheless, even with the extensive gap in Bitcoin prices, users and signups for this exchange were dating at around 10,000 users each month in the early part of 2017 and close to 8000 users per month towards the end of December. New stats have not emerged from Unocoin as to whether or not membership rates have dropped off since the announcement on February 1. With so many new users and with citizens within India starting to buy up plenty of Bitcoins as the market rose, legislation is needed desperately to ensure that the ongoing exchange does not begin and feed corruption further.

Why Is All of This Good?

In the short term, headlines may say India is anti-Crypto. Actually, the speech by Jaitley makes clear they are very much pro blockchain and by tackling the global problems raised by Crypto – India is the best test bed for reasons of size – it will accelerate a regulated mass market for Crypto.

Home tо thе ѕесоnd-lаrgеѕt internet user bаѕе and a world-renowned technology induѕtrу, the gоvеrnmеnt еffоrtѕ to demonetize thе есоnоmу in Nоvеmbеr 2016 bу removing larger nоtеѕ frоm circulation, and a bооming е-соmmеrсе market, means that the соuntrу mау bе аt аn inflесtiоn роint.

Given Indiа’ѕ ѕizе, thеrе is much tо рlау fоr. Before thе demonetization program, mоrе thаn 78% оf consumer рауmеntѕ wеrе mаdе in cash and three-quarters оf payments fоr internet рurсhаѕеѕ were mаdе viа саѕh on delivery. In thе days following dеmоnеtizаtiоn, the Nаtiоnаl Pауmеntѕ Cоrроrаtiоn of Indiа, аn umbrеllа bоdу for retail payment systems, rероrtеd thаt transactions on RuPау, a dоmеѕtiс рауmеnt card scheme, dоublеd. Paytm, a mobile wаllеt рrоvidеr nоw hаѕ mоrе thаn 200 million uѕеrѕ.

If India as a test-bed can solve Cryptos many issues, which the overoptimistic overlook and India can and will, then Crypto will boom – and it will.

Consider this: Indiа hаѕ 13 mobile mоnеу рrоvidеrѕ, but lеѕѕ mоnеу moves thrоugh wirеlеѕѕ transfers than in nеighbоring Pаkiѕtаn оr Bangladesh. Rеgulаtiоn рlауѕ a part in lосаl rules as lосаl rules require liсеnѕеd рrераid еntitiеѕ work with bаnkѕ, which rеԛuirе mоbilе operators to mаnаgе сuѕtоmеr bаlаnсеѕ in аn еѕсrоw ассоunt with a bank tо рrоvidе payment services. Tо overcome this, thе Gоvеrnmеnt lаunсhеd thе Unifiеd Pауmеntѕ Interface in 2016 tо lеt mоbilе users link bаnk ассоuntѕ tо thеir mobile. Althоugh bank ассоunt ownership hаѕ imрrоvеd, building thе link bеtwееn mоbilе аnd bank ассоuntѕ соuld hеlр tо reduce relatively high lеvеlѕ оf account dormancy.

Uѕеѕ for blосkсhаin аrе аlѕо bеing tеѕtеd. ICICI, Indiа’ѕ largest рrivаtе sector bank in tеrmѕ оf assets, iѕ piloting a service with Stellar, an nоt-fоr-рrоfit оrgаnizаtiоn, tо еnаblе lоwеr cost intеrnаtiоnаl rеmittаnсеѕ for non-resident Indiаnѕ with раrtnеrѕ in Afriса, Europe, and thе Philiррinеѕ.

Thе Reserve Bаnk оf Indiа hаѕ аlѕо еxрrеѕѕеd intеrеѕt in uѕing digitаl сurrеnсу fоr соmmеrсiаl trаnѕасtiоnѕ. The adорtiоn of digitаl сurrеnсу is ѕtill a long wау оff. Indiа’ѕ style оf еlесtrоniс рауmеnt migration mоving bаnkѕ, ореrаtоrѕ аnd consumers tоwаrd electronic рауmеntѕ in lосkѕtер hаѕ itѕ аdvаntаgеѕ, аvоiding the frаgmеntаtiоn thаt iѕ common tо other regions. A ѕtеррing ѕtоnе аррrоасh such аѕ this will grаduаllу mоvе thе соuntrу frоm a lеѕѕ-саѕh ѕосiеtу toward a саѕhlеѕѕ one.

You can see why India is the most important market for blockchain and then, a regulated Cryptocurrency market – because it seeks to solve on a massive scale of all of the crypto problems. Nothing Arun Jaitley said is against that. And if like me, you’ve ever spoken to him – you know he and his government are pro-technology.

Alpesh B Patel (@alpeshbp)

Alpesh is a hedge fund manager and Author of Trading Online (Financial Times). He is a partner to 24option who offer CFD trading on Cryptocurrencies.

The content of this article constitutes Marketing Communication and does not qualify as Investment Advice or Investment Research. This article is produced by Alpesh Patel. Any views or opinions presented in this article are solely those of the author and do not necessarily represent those of 24option. The article is of a general nature and does not take into consideration individual readers’ personal circumstances, investment experience, and current financial situation. 24option accepts no liability for the content of this article, or for the consequences of any actions taken on the basis of the information provided.

Sources:
1. Bhalla, Tarush. “Indian Blockchain Committee Head Clarifies That Cryptocurrency Is Not Illegal in India.” YourStory.com, Yourstory, 1 Feb. 2018, yourstory.com/2018/02/indian-blockchain-committee-head-clarifies-cryptocurrency-not-illegal-india/.
2. “Bribery and Corruption: Ground Reality in India.” EY – India, www.ey.com/in/en/services/assurance/fraud-investigation—dispute-services/bribery-and-corruption-ground-reality-in-india.
3. Correspondent, Special. “Jaitley’s View on Crypto Currencies Splits Opinion.” The Hindu, 1 Feb. 2018, www.thehindu.com/business/budget/union-budget-2018-jaitleys-view-on-crypto-currencies-splits-opinion/article22619016.ece.
4. Dawkins, David. “Bitcoin in India: End for Cryptocurrency as Finance Minister Warns He Will BAN Bitcoin Use.” Express.co.uk, Express.co.uk, 1 Feb. 2018, www.express.co.uk/finance/city/913071/bitcoin-india-Arun-Jaitley-budget-BJP-Modi-cryptocurrencies.
5. Goswami, Suparna. “Study Finds India Is Asia’s Most Corrupt Country, While Japan Comes In Last.” Forbes, Forbes Magazine, 9 Mar. 2017, www.forbes.com/sites/suparnagoswami/2017/03/08/study-finds-india-is-asias-most-corrupt-country-while-japan-comes-in-last/#610c0b801201
6. “India: Bitcoin Prices Drop As Media Misinterprets Govt’s Regulation Speech.” Cointelegraph, Cointelegraph, 1 Feb. 2018, cointelegraph.com/news/india-bitcoin-prices-drop-as-media-misinterprets-govts-regulation-speech.
7. “India Cracking down on ‘Illegal’ Cryptocurrencies.” RT International, www.rt.com/business/417572-india-illegal-cryptocurrency-crackdown/.
8. Lomas, Natasha. “PSA: No India Hasn’t Banned Bitcoin – but It’s Still Talking Tough on Crypto.” TechCrunch, TechCrunch, 3 Feb. 2018, techcrunch.com/2018/02/03/psa-no-india-hasnt-banned-bitcoin-but-its-still-talking-tough-on-crypto/.
9. Mundy, Simon. “India Signals Cryptocurrency Crackdown.” Financial Times, www.ft.com/content/9fc05f8e-0720-11e8-9650-9c0ad2d7c5b5.
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13. https://www.fincen.gov/resources/statutes-regulations/administrativerulings/application-fincens-regulations-virtual- Application of FinCEN’s Regulations to Virtual Currency Mining Operations
14. http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf
15. https://eprint.iacr.org/2013/829.pdf
16. https://www.irs.gov/pub/irs-drop/n-14-21.pdf
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18. https://indiankanoon.org/doc/651105/
19. http://comtax.up.nic.in/Miscellaneous%20Act/the-general-clauses-act-1897.pdf
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Cryptocurrencies Weekly Update: Cryptos under Pressure, BitGrail Exchange Hacked

After achieving stability last week and seeing values increase, many cryptocurrencies came under pressure yesterday upon hitting resistance. And there is developing news regarding BitGrail and a potential hack of the Italian cryptocurrency exchange regarding Nano tokens.

A Question of Coordinated Government Regulation, Prices Under Pressure

Cryptocurrencies continued to fight back before going into the weekend with rather impressive gains after storm clouds hovering over the broad markets lessened. However, early today, prices have shown volatility as values have begun to come under pressure and support is getting tested via many of the more widely traded digital currencies. Governments will continue to speak about the need for regulation regarding cryptocurrencies and Initial Coin Offerings. One of the questions that still need to be answered is how coordinated will governments be as they try to supervise the market and what type of actions will they take?

Dead Cat Bounce Being Tested, Ripple Reverses Lower after Resistance Hit

Ripple may be a good bellwether as the week begins anew for traders. XRP went into the weekend sporting solid gains as it attained 1.14 U.S Dollars per coin late on Friday and early Saturday. However, in the past twenty-four hours, Ripple has seen pressure and has lost value while falling to approximately 0.90 U.S cents. Important resistance looks to be about 0.70 U.S cents. The fact that Ripple hit a critical resistance area last seen the end of January, and was suddenly propelled lower will raise eyebrows. Some analysts have suggested the rise in cryptocurrency values made last week was a ‘dead cat bounce’ achieved as speculators came into the market and bought on lows and that headwinds will come back into force. As the week opens, it will be interesting to see if the downturn the past day will subside or grow.

XRP 1H Chart
XRP 1H Chart

Italian Cryptocurrency Exchange BitGrail in Hot Water, A Hack or Worse?

BitGrail, an Italian Cryptocurrency Exchange, announced early on Saturday its site had been hit by cybercriminals and apparently hacked for 170 million U.S Dollars’ worth of Nano tokens trading under the name of RaiBlocks. The cryptocurrency exchange said that it was suspending all transactions, including buying and trading as it tries to get a grasp on the circumstances. However, it should be noted that Nano’s core team of developers appears to be confronting BitGrail regarding allegations the Italian cryptocurrency exchange has been not processing withdrawals in an expedient manner since late December. This story may grow in the coming days.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

A Sea of Red Engulfs the Cryptocurrencies once more

Volatility persisted throughout the weekend, with Bitcoin seeing highs and lows through to Sunday morning, almost reminiscent of the moves through the week that culminated in a more then 50% rally from Tuesday’s $5,920.72 low to Friday’s close.

On Saturday, Bitcoin managed to rally 4.56% to an intraday high $9,090.8, with the prospects of recovering to $10,000 beginning to build, before Bitcoin came against strong resistance and has faced strong selling pressure since.

With the Cboe Bitcoin futures February contract sitting at $8,610 by Friday’s close, a pullback from $9,000 levels was to be expected ahead of Monday’s open, though not to the extent seen through the 2nd half of Saturday and early Sunday.

Bitcoin dominance rose from 33.6% to 34.8% on Saturday and investor jitters over regulatory oversight continues to plague the cryptomarket, with the SEC being clearer on its intentions to heavy regulate the ICO market, whilst classifying the cryptocurrencies differently, depending upon their function.

With the IMF having called for a more coordinated approach to managing the cryptomarket, best in class policies will likely be adopted and that’s unlikely to be too bullish for the market near-term.

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While total cryptomarket cap had moved up to $458bn midway through the day on Saturday, which saw Bitcoin’s market cap move up to $153.55bn, it’s been downhill since, with Bitcoin’s market cap falling back to $134.68bn at the time of writing, with Bitcoin down 8.18% to $7,860.

It’s been a dire 24-hours for Bitcoin and the cryptocurrencies and the weekend slide certainly doesn’t bode well for the week ahead, with Bitcoin sliding through its first major support level of $8,123.64, with the 2nd support level of $7,687.28 in sight.

A sustained rally through the weekend would have been an important milestone for the cryptocurrencies, with previous weekends ending with similar movements, which continues to reflect investor unease over the uncertainties that lies ahead for the cryptocurrencies and the initial coin offering platform.

Functionality continues to be an afterthought for the market and speculative investors are jumping in and out in herd like mentality that justifies the sizeable swings that are being seen across the cryptocurrencies in recent weeks.

Knee jerk reactions create opportunities, but they also create great unease and Bitcoin’s weekend highs have been on a downward trend this year, which will also be of concern.

For the day ahead, we will expect some recovery through the 2nd half of the day, though we certainly wouldn’t expect Bitcoin to move back through to $9,000 levels, with Friday’s futures close pinning back any material upside. Bitcoin’s first resistance level sits at $8,947.69 today and all things considered, we’re unlikely to see Bitcoin move too close to resistance levels.

Elsewhere, Ripple has slumped 11.36% to $0.907, with Ethereum down 7.38% to $786.82, Ethereum having failed to recover to $1,000 levels in last week’s relief rally.

The worst of the majors was Stellar Lumens however, which slumped 12.8% to $0.5021 through the early part of the morning, pulling back from Saturday’s 0.644 high.

We could see volumes pickup at current levels, which will be considered attractive by many, but rallies are short lived and few are interested in being exposed at the start of the week.

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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 11/02/18

Bitcoin Cash in Reverse

It was another Saturday of what could have been for Bitcoin Cash. Following a positive end to the week and, with the news wires relatively silent, Saturday morning saw Bitcoin Cash move through to an intraday high $1,385.00.

In the end, Bitcoin Cash slipped to an intraday low $1,198.00 before recovering to $1,261.1 to register a 2.76% decline for the day.

The weekend trends have been relatively consistent through the start of the year, with investors quick to lock in any profits before the start of a new week.

This time around the sell-button was certainly hit more quickly than usual, but that is to be expected in the wake of such a choppy week that, not only saw Bitcoin Cash fall to a week low $758.61, but also saw more than $4tn walk out of the global equity markets.

While there’s no evident correlation, investors with exposure to both equity and crypto markets would certainly be more likely to take a balanced view, last week’s trough to peak rally more than offsetting any losses that would have been taken across other asset classes.

At the time of writing, Bitcoin Cash was down 1.54% to $2,221.00.

For the day ahead, we will expect investors to be relatively cautious, with news having hit the wires of the SEC planning to take a tough stance on initial coin offerings and differentiate between true cryptocurrencies, such as Bitcoin and ICO tokens, not new news but a reminder to investors of what’s on the horizon.

Bitcoin Cash will need to make a move through $1,300 to avoid testing support sub-$1,100 levels ahead of the start of the new week.

BCH/USD 11/02/18 Hourly Chart

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Litecoin on the Slide

Following a strong 2nd half of the week, Litecoin’s weekend rally came to an abrupt end midway through Saturday, with Litecoin falling from an intraday high $169.49 to an intraday low $148.02 before a partial recovery to 153.64.

Saturday’s 6.38% slide was certainly an unexpected one, with the cryptocurrencies seeing gains across the board in the early part of the day.

Investor sentiment towards regulatory oversight remains negative and, with the news wires continuing to discuss the ongoing shift in the regulatory landscape in key crypto jurisdictions, investors continue to be quick to lock in profits.

Things were not much better this morning, with Litecoin down 6.06% to $145.68 at the time of writing, in what is developing into another bearish trend, as Bitcoin dominance moves back towards 35% plus levels, signalling weakening appetite for cryptocurrencies, with dominance sitting at 34.8% at the time of writing.

For the rest of the day, a move through to $150 levels would ease some pressure, though with uncertainty going into the next week, any material gains may be on hold, with the path of least resistance being further declines through the day.

LTC/USD 11/02/18 Hourly Chart

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Ripple Corrects Again

It was an extraordinary day for Ripple on Saturday, with Ripple rallying 34.1% to an early Saturday high $1.234, before seeing a 2nd half of the day slide to an intraday low $0.9271.

In the end, Ripple gained just 6.45% to end the day at $0.9798, though it could have been so much more, with negative sentiment still lingering in the markets, leading investors to lock in profits before the end of the weekend session.

Any hopes of a weekend rally to kick start the week on a positive footing look slim at present, with Ripple down 10.36% to $0.9173 at the time of writing. Quite a fall, with Ripple taking a bigger hit than most, volatility sitting on the higher side relative to many of the major cryptos.

For the remainder of the day, a move back through to $1.00 levels would certainly support a late Sunday rally, though we will expect there to be plenty of resistance ahead of Monday, with sub-$0.90 support levels having already been tested this morning, Ripple having already hit an intraday low $0.8905.

XRP/USD 11/02/18 Hourly Chart

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Bitcoin Dominance Eases with Ripple Trailblazing into the Weekend

What a weak for Bitcoin and the Clan.

Tuesday’s $5,920.72 low was a moment of truth, not only for Bitcoin, but for the cryptomarket in general, with the cryptobears seizing the opportunity to dominate the news wires in the early part of the week.

Goldman Sachs coming out to say that most, if not all of the existing cryptocurrency prices will hit zero, referencing the dot.com bubble and the collapse of first to market players who ultimately gave way to the likes of Amazon.com and Google that dominate the market today.

The talk of zero seemed to have little impact on investors however, with focus being more heavily biased towards regulatory chatter than a single opinion that may or may not become a reality down the road. After all, the 90s is quite some time ago and some of today’s innovative platforms have already made progress in the real world, with others ready to hit the market.

Bitcoin managed to close out the week at $8,886.89, an 8.5% gain from Monday’s opening $8,190.78 and more importantly, up 50.1% from Tuesday’s $5,920.72 low.

Relative to its peers, the gains were less impressive, but were nonetheless an important one for the cryptomarket, with Bitcoin being the barometer for many investors. This is largely reflected in Bitcoin’s dominance numbers through the week, which eased from 35.9 to a current 33.6%, as investor appetite for the altcoins improved through the second half of the week and into the weekend.

Fake news was certainly a contributory factor to last Tuesday’s woes, with hackers able to manipulate the markets at ease it seems. Cyber security will need to be ramped up to protect the market and investors and that may be where governments and regulators can step in, without destroying the evolution of blockchain technology that is likely to become a major element of everyday life.

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The good news for the market has been the rise in total market cap, which sits at $458.05bn at the time of writing, up from a lowly $276.82bn last Tuesday.

Going into the weekend, Bitcoin managed to touch a Saturday high $9,090.8 in the early hours, which has led to some impressive early risers going into the weekend.

Ripple is making a splash, surging 21.59% to $1.119 this morning, easing back from an intraday high $1.15977, with Stellar Lumens and Cardano also making double digit rallies this morning, though neither have been as impressive as Ripple.

It’s ultimately going to boil down to how successful the respective platforms will be in the real world and with crypto risk appetite returning, it’s not that surprising that Ripple is on the move.

At the time of writing, Bitcoin was up just 2.63% to $8,922.24 in the early part of the day and, with Cboe Bitcoin future’s February contract closing the week at $8,610, how far Bitcoin can go remains to be seen, with Friday’s close likely to be a hindrance that others are free from.

This is not the first weekend rally of the year, but it could be the first to push through to Monday’s open, if investors are able to hold their nerve and not go for the sell button.

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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 10/02/18

Bitcoin Cash Looking to Break $1,400

Bitcoin Cash enjoyed a week in positive territory, gaining 13% from Monday’s opening $1,157.2, though the gains masked events through the first half of the week, which saw Bitcoin Cash slump to a Tuesday low $758.61.

Bitcoin Cash and its peers initially responded to news on Tuesday that China’s central bank, the PBoC, was about to ban the trading of cryptocurrencies both onshore and offshore. The news hit the wires ahead of a heavily anticipated cryptocurrency Senate hearing that had the Chairman of the SEC and CFTC giving testimony.

With both Chairmen calling for a measured approach to the cryptomarket and the news from China being called fake news by the PBoC itself, there was certainly some relief in the market.

Bitcoin Cash rallied 72.42% from Tuesday’s low to Friday’s close, with the second half of the week seeing very little by way of regulatory chatter to rock the cryptomarkets for a 2nd time.

Friday’s 2.31% gain may not have been spectacular, nor the week’s gains, but for the cryptomarkets, there seems to be a growing concern in certain jurisdictions of losing the entrepreneurialship associated with blockchain start-ups, the U.S being one jurisdiction in particular and that can only be good news.

Such sentiment from the Chairman of the SEC, which was also shared by some up and coming Democratic candidates, one of whom is accepting Bitcoin for campaign donations, is all a step in the right direction for the cryptomarket and its future.

With cryptocurrency investors in better spirits going into the weekend, Bitcoin Cash was up 3.65% to $1347.4 at the time of writing, with the traditional weekend rally looking set to kick off.

Whether the rally fizzles out remains to be seen, but if Bitcoin Cash can make a move through to $1,400 levels, it will be likely draw in new and old money.

As always, there is an ongoing risk that regulators may spoil the party, which will likely result in a more orderly move through the weekend for Bitcoin Cash and the majority of the cryptos.

BCH/USD 10/02/18 Hourly Chart

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Litecoin Trails after a Solid Week

Litecoin certainly enjoyed a strong recovery through the week, gaining 14.09% to Friday’s $168.3 close, with Friday’s 12.88% rise a strong statement, when compared with Bitcoin Cash’s 2.31% gain on the day.

A move through to $160 levels doesn’t yet support those projecting Litecoin to rally to $400 levels, but it’s certainly a step in the right direction

Another positive for the Litecoin team is the daylight now between Litecoin and Stellar Lumens in the rankings, with Litecoin’s market cap rising to $9.16bn, Lumen’s sitting at $8.12bn at the time of writing.

There’s plenty of hype over Litecoin’s Litepay platform, with many considering this to be the first platform to really give fiat money a run for its money. If it delivers, $400 could turn out to be a low ball forecast, though don’t expect Litecoin to jump to these levels on the day of release. Investors will need to assess its acceptance in the market place, though the speculative investor will no doubt jump in regardless.

LTC/USD 10/02/18 Hourly Chart

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Ripple Makes a Splash and Breaks $1.00

A sheepish first half of the day turned out to be a tear for Ripple’s XRP, which recovered from a Friday low $0.724 to close out the day at $0.98518, a 26% gain for the day.

It was the best of the three performance wise for the week and for the day, with Ripple ending the week up 20.97%, which included a 72% rally from Tuesday’s $0.57294 low to Frida’s close.

Amongst the cryptocurrencies, Ripple’s platform has certainly main inroads into the mainstream, having been adopted by numerous financial institutions, facilitating cross border payments. As the platform becomes more widely accepted, Ripple’s XRP will likely reflect the successes of both the platform and the Ripple team’s ability to roll out the product to market.

Following strong gains last week, the weekend has started kindly, with Ripple up 9.59% to $1.00845 at the time of writing, with only Stellar Lumens anywhere near amongst the majors, Lumens up 8.18% to $0.42.

A weekend rally looks on the cards and Ripple has arrived to the party early. The milestone will be for the cryptos to hold onto the gains through to Monday’s open.

XRP/USD 10/02/18 Hourly Chart

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Ethereum Price forecast for the week of February 12, 2018, Technical Analysis

ETH/USD

The Ethereum markets fell significantly to the downside during the week, as the crypto currency markets continued the meltdown. We reached below the $600 level, which was a very negative sign, but we have bounced since then to form a massive hammer. The hammer of course is a very bullish sign, and a break above the top of that hammer is typically a buy signal. I think although the buyers look like they are coming back, this won’t be a straight shot to the upside. Ultimately, I do think that value hunters have come back into the market, but this needs to grind sideways to build up support. If we do rally just as rapidly as we did earlier this year, that’s going to set up for an even worse sell off.

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ETH/USD Video 12.02.18

ETH/USD weekly chart, February 12, 2018
ETH/USD weekly chart, February 12, 2018

ETH/EUR

The Ethereum market broke down below the €600 level during the week, finding support at the €450 level before bouncing significantly to form a hammer. The hammer of course is a bullish sign, so we can break above the top of that hammer, I suspect that we will eventually grind towards the next psychological important barrier, the €800 level. I don’t think it’s a straight shot higher, and I think that this is more of a grind to the upside that we will probably see. If we managed to break down below the bottom of the hammer, that would be a very catastrophic sign and I think that this pair would fall apart. Ultimately, I think we are trying to build up confidence.

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ETH/EUR weekly chart, February 12, 2018
ETH/EUR weekly chart, February 12, 2018

Alt Coins Price forecast for the week of February 12, 2018, Technical Analysis

Bitcoin Gold

Bitcoin Gold markets initially sold off during the week, reaching down to the $75 region. We have rallied a bit since then though, raking above the $100 level, and formed a hammer on the weekly chart. Because of this, it’s very likely that we will continue to see buyers jump into this market. I anticipate that a move above the top of the hammer should send this market towards the $150 level, and then eventually the $200 level. If we were to break down below the bottom of the weekly hammer, this market will implode.

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BTG/USD weekly chart, February 12, 2018
BTG/USD weekly chart, February 12, 2018

Dash/USD

Dash traders sold off during the week as well, breaking below the $400 level at one point. The market bounce significantly from there, so as you can see we have turned around to form a hammer. If we can break above the top of the hammer, the market should then go to the $800 level, and then possibly the $1000 level. I would anticipate that we will probably grind higher and not necessarily explode, because I think most retail traders are going to be skittish.

DASH/USD weekly chart, February 12, 2018
DASH/USD weekly chart, February 12, 2018

Monero

Monero markets fell significantly down to the $150 level, and then bounced enough to form a massive weekly hammer. As the Ethereum and Bitcoin markets did the same, it looks as if the crypto currency market is all starting to move in lockstep again. If we can break above the top of the hammer, the market probably goes to the $280 level, and then eventually $320. I think that we need to grind to build momentum though, so at this point it’s going to be very difficult for a lot of retail traders to deal with what I think is going to be a bounce around with an upward attitude.

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Monero/USD weekly Chart, February 12, 2018
Monero/USD weekly Chart, February 12, 2018

Bitcoin Price forecast for the week of February 12, 2018, Technical Analysis

BTC/USD

Bitcoin markets broke down significantly during the week, reaching down towards the $6000 level. This is an area that caused a massive bounce, and in fact we ended up forming a hammer. The hammer is a very bullish candle stick, and it could have market participants looking to invest in Bitcoin, and not simply trade it from a momentum perspective. I think that although this is a bullish sign, and could lead to more buying, it’s a bit much to think that this market is going to rally the way it had earlier this year. Because of this, I think a certain class of retail trader is gone forever. Beyond that, if we were to break down below the $6000 level, it’s over. Otherwise, we will probably try to reach the $10,000 level which should be resistive.

BTC/USD Video 12.02.18

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BTC/USD weekly chart, February 12, 2018
BTC/USD weekly chart, February 12, 2018

BTC/JPY

Bitcoin markets have rallied after initially falling significantly during the week, forming a hammer. The hammer is a very bullish sign, and I think that if we can break above the ¥1 million level, the market could go even higher. The ¥1 million level of course is drastically important from a psychological perspective, and if we can clear that area I think we would then go to the ¥1.2 million level. The market is going to be very choppy and difficult, but if you have the ability to hang onto a longer-term position, you may be getting your opportunity to pick up Bitcoin. However, if we break down below the bottom of the hammer for the week, I believe Bitcoin will implode.

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BTC/JPY weekly chart, February 12, 2018
BTC/JPY weekly chart, February 12, 2018

Ethereum Price Forecast February 12, 2018, Technical Analysis

ETH/USD

Ethereum markets rallied during the trading session on Friday, reaching towards the $850 level. More importantly, the weekly candle looks as if it is going to form a hammer, a very bullish sign as well. I think if you can break above the top of this weekly candle, buyers will return to the market, but I don’t think we’re going to see them in the same manner that we had earlier in the year. After all, volume is a bit thin, and a lot of retail traders have been decimated. Unfortunately, a large amount of them have put their Bitcoin and Ethereum on credit cards, compounding losses. Slow and steady probably wins the race here.

ETH/USD Video 12.02.18

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ETH/USD daily chart, February 12, 2018
ETH/USD daily chart, February 12, 2018

ETH/EUR

Ethereum markets rallied a bit during the day against the euro as well, and it looks as if we are trying to break above the €700 level. If we can get above there, it’s likely that we will go to the €800 level. Ultimately, I think that the market is probably going to continue to pull back occasionally, and I think that there will be buyers underneath looking to get involved. Ultimately, I think that the €600 level underneath is going to offer a bit of a “floor” for the short-term trader. If we break down below there, then we probably go down to the €450 level. I think we are trying to build up the upward momentum, but it’s going to be much slower than we had seen earlier in the year.

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ETH/EUR daily chart, February 12, 2018
ETH/EUR daily chart, February 12, 2018

Alt Coins Price Forecast February 12, 2018, Technical Analysis

BTG/USD

Bitcoin Gold rallied again during the trading session on Friday, reaching towards the $125 level. We have gained over 9%, and this will of course attract a lot of attention. We are in the middle of a noisy area though, so I would anticipate that we could get a little bit of a pullback. Pullback could be a buying opportunity, and therefore I think that value hunters will continue to flock to this market.

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BTG/USD DASH USD and XMR USD Video 12.02.18

BTG/USD daily chart, February 12, 2018
BTG/USD daily chart, February 12, 2018

Dash/USD

Dash markets rallied a bit during the trading session on Friday, breaking above the $600 level. I believe that the market should continue to be bullish, but we are approaching a resistive area, so we may get a bit of a pullback that you can take advantage of. If we were to roll over and break below the $400 level, that would be the end of Dash. The meantime though, looks as if the crypto currency markets are trying to recover a lot of the losses, so I think that it remains a “buy on the dips” situation. If we can break out to the upside, the next target will be $800.

DASH/USD daily chart, February 12, 2018
DASH/USD daily chart, February 12, 2018

XMR/USD

Monero markets rallied ever so slightly during the trading session on Friday, and out of the alt coins that I follow here at FX Empire, this is the weakest performer. However, it does have a nice-looking hammer on the weekly chart, so I think we could see bullish pressure longer term. This is a market that will probably lag the others but will obviously move in the same direction.

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Monero/USD daily Chart, February 12, 2018
Monero/USD daily Chart, February 12, 2018

Bitcoin Price Forecast February 12, 2018, Technical Analysis

BTC/USD

Bitcoin markets rallied a bit during the day on Friday, as we continue to grind around the $8000 level. The weekly candle is a hammer, and that of course is a very bullish sign. If we can continue to go higher, I think the market probably reaches towards the $10,000 level above, and I think that we will have a lot of noise in that general vicinity. I think that the market will probably find buyers on dips, as the longer-term money seems to be interested. However, if we were to break down from here, I anticipate that we will test the $6000 level again. So below the $7400 level, I suspect that the short-term sellers are going to get involved.

BTC/USD Video 12.02.18

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BTC/USD daily chart, February 12, 2018
BTC/USD daily chart, February 12, 2018

BTC/JPY

Bitcoin also was somewhat positive against the Japanese yen during the trading session on Friday, but we remain below the ¥1 million level, which is massive resistance. If we can break above that level, then I think the market should go to the ¥1.2 million level will eventually. In the meantime, I think we could be looking at pullbacks, and of course the Bitcoin markets tend to move in tandem, so if one of them sells off, the other one will as well. The ¥700,000 level underneath should be supportive, and if we break down below their things could get ugly. At this point, I suspect that there will be a lot of people willing to buy the dips. Overall though, I think that the days of doubling your money in a few hours are probably behind us.

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BTC/JPY daily chart, February 12, 2018
BTC/JPY daily chart, February 12, 2018

Market Snapshot – Cryptos Are Set to Rise in Next Leg

Cryptos Likely to Pick Up

Bitcoin prices have been choppy since the beginning of the day. The prices were down for the first half of the day but have picked up over the last few hours and looks set to launch itself on its next bullish leg, after quite some time. There has been a sense of calm in the crypto markets over the past couple of days which is quite unusual for these markets, especially considering the fact that the prices have been hit hard of late due to various types of news and developments that we have seen in the industry over this period. In the latest round of buying in the BTC market, we are now seeing the prices approaching the $8500 region at this point of time and it is likely that this bullish trend might continue for the short term as the lack of any bad news in the market is in itself consider as good news by the traders nowadays. There should be some amount of selling seen in the $8500 but this should hold up the prices only for a short while and a break through that should target the $9000 region next and that would truly resume the bull run.

Stock Markets Still Uncertain

The stock markets have been dealing with some turmoil of their own as they have been hit hard since the beginning of this week and this fall has affected all the major global markets. There are no fundamentals or economic data to support the fall but it looks as though the fall is purely down to the fact that investors and traders have been jittery due to the large rise seen in the markets over the last couple of months and they simply felt that a correction was due and wanted to take profits to pick up the stocks at lower prices. It would be difficult to pick a bottom for this move at this point and traders would be served well to wait for the markets to show its hand before jumping in on the buys again. This would help the traders to avoid the common pitfall of being too early on any move.

Bitcoin Down but Fighting Back amidst a sense of Calm

A relative sense of normality has returned to the cryptomarkets in the 2nd half of the week, with Bitcoin closing out Thursday with a 4.43% rise to $7,924.49.

The gains may not be as impressive as ones investors had become accustomed to, before the negative sentiment that began to hit the markets back in January, but when considering Bitcoin’s 2018 lows and the cryptobears who seized on the opportunity to write off Bitcoin and the rest, the recovery has been an impressive one.

Throughout 2017, a long debate over the likely adverse effect of regulatory oversight came to a fore this week, with the markets responding to a flurry of regulatory chatter, some accurate and some fake.

As we move through to the end of the week, a sense of calm has returned and with it an acceptance that the cryptomarket will not be allowed to continue as it had done so previously, in the hands of its developers with no interest in self-regulation.

While some of the money that walked out the door may never return, new investors may well begin to take a closer look at the market and what future it has to offer.

For Bitcoin, a 46.08% rally from Tuesday’s $5,920.72 low to Wednesday’s $8,649 high was a telling moment for the market and those doubting that the cryptomarket can survive.

A fall through to sub-$5,000 levels could have been quite damming though even then, one does wonder whether it would have spelt the end.

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For now, there is an opportunity for investors and prospective investors to reflect on the events and crypto moves of the last few weeks and begin to consider the market as one that is likely to continue to expand and grow.

The good news for investors will be the fact that we have yet to see any material correlation with other asset class, Thursday’s gains coming in spite of a global equity market sell off that has found little support, with investors waiting for more before jumping back in.

Granted, we are unlikely to see the Dow rally 46% in a couple of days, but then there are significantly greater risks involved when in investing in virtual currencies.

At the time of writing, Bitcoin was down 4.14% to $7,917.85 and, while a bearish trend has been formed through the early part of the morning, we will expect there to be plenty of support at $7,673, with Bitcoin having broken through its first resistance level earlier in the day, hitting an intraday high $8,259.42.

$10,000 levels may be considered too far off for now, but if Bitcoin can move back through $8,000 before the weekend, the prospects of hitting $9,000 before Monday’s open should set things up nicely for next week.

Investors will need to tread carefully however. Following Tuesday’s testimony to the Senate, the calls for ‘do no harm’ from the chairman of the SEC and chairman of the CFTC may fall on deaf ears. Until the U.S government’s intentions are clearer there is little impetus for a more sizable rally.

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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 09/02/18

Bitcoin Cash Positioned Nicely

It was a great day for Bitcoin Cash on Thursday, with Bitcoin Cash hitting an intraday high $1,359, before easing back to $1,215 by the close to log a 27.24% gain for the day.

It’s been a week of highs and lows, with Bitcoin Cash having stumbled to an intraweek low $758.61 on Tuesday. That’s a 79.14% rally from trough to peak and just in a couple of days and at a time when the global equity markets have moved into correction territory, with more than $5tn having walked out the door in a matter of days.

There had been some talk of the cryptomarkets tracking the equity markets, but as with the comparisons to gold, correlations have been largely coincidental and Thursday’s moves were more of negative than a positive correlation.

Cryptocurrency investors will be feeling somewhat more satisfied as things stand, with Bitcoin Cash in positive territory for the week.

At the time of writing, Bitcoin Cash was down 3.39% to $1,235.1, pulling back from a run to $1,300 levels, with the crypto expected to face stern resistance at $1,300.

For the day ahead, we can expect some volatility, though a move through $1,300 levels ahead of the weekend could provide some optimism over the weekend that tends to favour the cryptos.

While regulatory noise has been on the lighter side in the 2nd half of the week, the latest news to hit the wires was of the HK SFC sending letters to a number of crypto exchanges, advising them of the appropriate classification of certain tokens on offer. Other action has also been taken against some ICO organizers, with the HK SFC the latest regulator to take greater interest in the cryptomarket.

The news was not too damming for the market however, with some regulatory oversight now widely expected and, to a certain degree, accepted.

BCH/USD 09/02/2018 Hourly Chart

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Litecoin Going Sideways

A few weeks ago, sideways would have ultimately met with an untimely slide, but not these days…

Litecoin gained 5.44% on Thursday to end the day at $145.3, moving within relatively tight ranges through the day as the cryptomarkets continued to recover from the first half of the week woes.

With the cryptomarkets in the red through the early part of this morning, a degree of profit taking is to be expected, following the week’s recovery that has seen Litecoin rally 53.5% from Tuesday’s low $104.24 to Thursday’s $160 high.

At the time of writing, Litecoin was down 3.01% to $144.52, with Litecoin likely to find support at $140 through the morning, though a failure to break through to $150 levels could lead to a bearish trend this afternoon.

LTC/USD 09/02/18 Hourly Chart

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Ripple Looking Sheepish

Ripple managed to outmanoeuvre Litecoin on Thursday, gaining 5.89% to end the day at $0.75692, with a broad based recovery providing support to the cryptomarkets.

It was a relatively choppy day however, with news of Ripple’s platform finding new buyers doing little to spur a Ripple rally through to Wednesday’s highs and beyond.

The lack of market response to real world news continues to reflect the caution amongst cryptocurrency investors and, while sentiment has improved, the uncertainty remains for now.

At the time of writing, Ripple was down 5.2% to $0.7403, sitting well below this morning’s intraday high $0.7905, with a move through to $0.80 levels needed to fuel a more meaningful weekend rally and avoid a pull back before the end of the day.

XRP/USD 09/02/18 Hourly Chart

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Ethereum Price Forecast February 9, 2018, Technical Analysis

ETH/USD

The Ethereum markets rallied a bit during the trading session on Thursday, reaching towards the $850 level. That level has previously been supported, and it’s likely that the resistance showing up here makes sense as it is a phenomenon known as “market memory.” Because of this, it’s not until we clearly break above the $850 level that I think we can go higher and go looking towards the significant $1000 handle above. The market looks likely to be very volatile, and at this point I would pay attention to volume, as it is very low. Because of this, it’s possible that this could be a bit of a “dead cat bounce.” If we break down below the $700 level, that would confirm that we are going much lower.

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ETH/USD Video 09.02.18

ETH/USD daily chart, February 09, 2018
ETH/USD daily chart, February 09, 2018

ETH/EUR

Ethereum markets rallied a bit during the trading session on Thursday as well against the Euro, but I think that the €800 level above is the “ceiling”, at least for the time being. The €600 level underneath is massive support, so I think if we break down below there it would be very negative for this pair. Volume is almost nonexistent, and that makes me a bit cautious about buying. It’s possible that we have started to enter an accumulation phase, but I believe that you have plenty of time to start buying, because the days of massive surges higher in the crypto currency markets are probably over. There been far too many people burnt by the bubble, so I think that if we do recover the losses, it will be more of a slow and steady move.

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ETH/EUR daily chart, February 09, 2018
ETH/EUR daily chart, February 09, 2018

Alt Coins Price Forecast February 9, 2018, Technical Analysis

BTG/USD

Bitcoin Gold rallied significantly during the trading session on Thursday, gaining 20% as I record this. There was a massive breakout above the $100 level, so this of course is very impressive, and encouraging. However, there’s a lot of noise between here and the $130 level, so I think that buying on dips will probably be the best way to go if you are trying to play for a longer-term move. If we break down below the $90 level, this coin is probably going to collapse.

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BTG/USD DASH USD and XMR USD Video 09.02.18

BTG/USD daily chart, February 09, 2018
BTG/USD daily chart, February 09, 2018

Dash/USD

Dash markets had a strong day as well, reaching the vital $600 level. We did roll over a little bit from that level, and volume is starting to drift a bit lower as well. Because of this, I think we will probably have to pull back to build up the necessary strength and confidence to try to break out. Above the $650 level, the market will probably recapture most of the losses. However, this is a very thin market right now, so I think that a little bit of work needs to be done to make that move. If we break down below the $500 level, we will revisit the lows again.

DASH/USD daily chart, February 09, 2018
DASH/USD daily chart, February 09, 2018

Monero

Monero made a strong move during the day as well and has recaptured much of the losses over the last couple of days. If we can clear the $260 level, we may perhaps go even higher, but volume in the Monero market is very thin. Because of that, I think that you will need to pay more attention to the Bitcoin charts than Monero to trade this market. We are essentially exactly where you would expect to see the sellers come back in, so it will be interesting to see whether people are willing to get out of the market where the stops had been run previously, to preserve their initial trading capital.

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Monero/USD daily Chart, February 09, 2018
Monero/USD daily Chart, February 09, 2018

Bitcoin Price Forecast February 9, 2018, Technical Analysis

BTC/USD

The Bitcoin markets have rallied a bit during the trading session on Thursday, breaking above the $8500 at one point. We have given back some of those gains and are currently testing an area that has been interesting in the past. I think the $8000 level is going to be important, and I believe that the markets are going to continue to pay attention to this area. I think that if we break down significantly below there, the market will collapse. We have seen a lot of bullish pressure over the last couple of days, but the volume hasn’t been that exciting. I believe that this could go either way, but after the massive damage that we have seen over the last couple of weeks, I anticipate that even if we do rally from here, you will have plenty of opportunities to pick up value on dips.

BTC/USD Video 09.02.18

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BTC/USD daily chart, February 09, 2018
BTC/USD daily chart, February 09, 2018

BTC/JPY

If you want to trade crypto currencies, this is a most important chart to pay attention to. It is showing signs of life again, and as a record this we are up 9%. While that sounds exciting, keep in mind that we had lost 70%, so it’s not as impressive as it would have been at much higher levels. Nonetheless, this market is showing signs of fighting again, and I think that as we approach the ¥1 million level, it will get very interesting to see what happens next. If we can clear that area, then I think we go much higher. Otherwise, this will have been a “dead cat bounce.”

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BTC/JPY daily chart, February 09, 2018
BTC/JPY daily chart, February 09, 2018

Market Snapshot – Calmness in The Markets

Stock Markets Calm

Some amount of calmness has returned back to the stock markets as the period of uncertainty and panic selling seem to be going off in the short term. After a few days of a large amount of selling, that we have seen over the last week or so, the last couple of days has been quite steady despite the continuing bearish outlook. The investors have seen a period of large drop and then a recovery of sorts and now they are not sure whether to get into the markets at this time or wait for the stock markets to see whether the drop continues and they can pick it up later. So, we are in a state of deadlock but what should keep the bulls happy is the fact that this has brought to an end the period of panic selling and we are seeing some calmness. The BOE has hinted at a rate hike which has helped the pound to move higher over the last few hours. This was not expected from the BOE which was looking to keep things as is but this hawkish outlook has helped the pound climb back above the 1.40 region.

Cryptos Steady

The bitcoin prices have been holding steady in the $8000 region as some positive sentiment returned back to the crypto markets due to the absence of any bad news and also due to the hawkishness that was seen in the Senate hearing on cryptos. The developments in the space have been so quick and fast that even a day of no developments is considered as hawkish for the markets. This is a big rebound for the crypto prices considering that the BTC prices were at a huge loss during the early part of the week as they were in the $6000 region and it looked as though further losses were along the way. But that has been salvaged to some extent by the latest round of bullishness which has now given way to consolidation over the last couple of days. This is likely to continue in the short term before we see the next direction in the crypto markets.

Bitcoin Traders Reacting to Positive Sentiment

Trading sentiment has improved on the heels of an implied endorsement made regarding Blockchain via the CFTC Chairman during a Congressional hearing on Monday.

Traders Reacting to Endorsement of Blockchain, India Seeks Tax Revenues

Cryptocurrencies have continued to recover from their lows made earlier this week, when a flurry of developing news created poor speculative conditions. Traders have reacted positively to the implied endorsement via the U.S Congressional hearing earlier held on Monday that Blockchain technology will play an important part in international transactions in the coming years. And it has been reported today, that India intends on pursuing tax revenues from traders within its nation who have profited from trading in cryptocurrencies.

Bitcoin Fights Back from Lows, Test of Key Resistance Underway

Bitcoin has been able to fight off lows. It has gained in a rather stable fashion the past few days and is near 8,200.00 U.S Dollars per coin. Key resistance appears to be the 8,800.00 level short term. If Bitcoin is able to climb above this resistance, traders may find additional momentum. Support for the cryptocurrency is around 7,400.00 U.S Dollars. The value of Bitcoin continues to be impacted by the reaction of traders to market news and the sentiment it generates.

Bitcoin 1H Chart
Bitcoin 1H Chart

 

 

 

 

 

 

 

Japan’s FSA Expanding Inspection of Cryptocurrency Exchanges

Reports are circulating the Japanese government intends to carry forth a broad inspection of cryptocurrency exchanges working in the nation. The action comes as the Coincheck hack continues to generate news, and Japan’s Financial Services Agency takes a closer look at Coincheck’s operating procedures and accounting.

Manila Cryptocurrency Show Coming Next Week

A cryptocurrency event will be held in the Philippines on February the 12th which will include panel discussions and networking opportunities for participants.

  • 12th, Philippines, Crypto Currency Expo in Manila

Yaron Mazor is a senior analyst at SuperTraderTV.

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