Bitcoin stands ground over 6,000

90% of the news on crypto-currencies are coming from a negative perspective and more specifically speaking are the headlines of articles on various websites. Our weekly crypto outlook will today aim to come against such opinions because we aim for originality and we strongly believe Cryptos have potential for future advancement.

Crypto-currency trading platform Omniex confirmed it had added former U.S. Securities and Exchange Commission chairman Arthur Levitt and former Federal Deposit Insurance Corp chair Sheila Bair to its board of advisers. It could be the case that more businesses are now hiring crypto-currency experts as pair its regulatory perspective but also research wise. This urge of expertise is solid evidence of the markets change of direction regarding the near future, making attempts to protect client interests and its own, while firms are making plans to move into digital currencies. We maintain the opinion that people with such expertise and experience should rightfully be assigned to these positions in order to share their knowledge. Since interest in crypto-currencies has grown, firms associated with digital assets should make it a must to employ or learn from people with this kind of expertise. However, how many people are capable of overtaking this task is a different story.

Furthermore, we are now viewing company’s allowing crypto payments for random services. Dish Network Corporation a U.S. television provider has now enable Bticoin Cash as a method of payment for its clients. DISH clients can choose between Bitcoin and Bitcoin Cash to pay for monthly subscriptions, as well as pay-per-view movies and events. Along with the news came a statement for the company’s representatives that they have a number of customers paying with crypto-currency each month, and that BitPay gives options and convenience to their customers.

On other news, various sources indicated that Bitmain Technologies, the crypto-currency mining company, is filing for an initial public offering with expectations as high as $18 billion. A possible $18 billion IPO would enable Bitmain to overtake social media giant Facebook as one of the largest public offerings in history. The fact that the firm is associated with digital assets and is preparing for a massive IPO, the biggest in history we could say, may help boost cryptos price support. For expectations to be so high there must be a reason, however if the actual results will be realized remains to be seen.

At this point we would like to make a reference to what is currently happening in the market with millions of participants following the news. Investors and traders are giving too much emphasis on negative news and not so much on the positive developments. Evidence in the market are the prices dropping to nearly 1/3 compared to the start of the year but also the market cap which has also shrank considerably. However, in investing the people who can take the markets hard time, which is none other than prices going against them, will eventually be profitable in the long run. The fact remains, in 2009 when this innovative instrument was created no one would even think of it as going as far as it has, while people did purchase it for fun. Currently, after almost 10 years the digital asset finds itself under huge doubt again but still holds up to harsh circumstances. When the positive returns and the cryptos are under purchase, only those who withstood the uncertainty and other people’s opinions will be crowned kings. This case is often a hand full of people that dare to oppose the world. At the same time, cautious and patience is recommended.

Bitcoin against the US Dollar opened higher on the Monday session displaying a bullish appetite. It is now moving between our $6,643 resistance level and the $6,229 support level. Please note, BTC/USD is trading lower than last week’s outlook but it is higher than last week’s closing and so it is perceived as positive.

If the crypto-currency is undertaken by a bullish sentiment we could see it break the $6,643 resistance level and aim higher for the $7,120 resistance barrier. On the other side, should the digital currency drop lower it could break the $6,229 support level aiming lower for the $5,757 support hurdle.

Crypto market: The sharks are coming in

The trend continues, as everyday more firms seem to be willing to give crypto technologies a chance with the digital coins being the center of future interest. We identified the most profound updates from worldwide known companies that have shown interest in cryptos. Keeping in mind that the bigger the firm is, the greater the statement they make that confirms that crypto currencies are here to stay.

According to Bloomberg, Goldman Sachs is considering a proposal to offer custody for crypto funds. In more detail, Goldman, would hold the innovative coins on behalf of the funds, with the aim to eliminate client’s worries of losing their funds due to cyber-attacks.

A bank with the caliber of Goldman Sachs is not experimenting with new assets or looking for ways to boost their reputation as they already have both, instead is responding to client interests on digital products. Goldman, has not given a specific date of enacting its crypto services nor confirmed it will actually proceed, but the interest remains the vital point as it creates the circumstances for future developments. Also, in the beginning of 2018 Goldman hired Justin Schmidt to be head of its crypto Department which also confirms they could at some point offer crypto services.

Here, we would also like to add, that in previous months a very similar approach was followed by other huge banks like Bank of New York, Mellon Corp, JP Morgan Chase & Co. and Northern Trust Corp confirming they are in process of developing services for clients using virtual coins.

A new advancement for Ethereum coin owners has taken place and seems to make life easier for users of the specific coin. In order for users to make a transaction from wallet to wallet exchanging Ethereum, would initially have to add their 40 character hash identifier which was prone to error due to its size. Now, Minds + Machines Group Limited a firm associated with building Internet Top-Level Domains has made an agreement to create services for Ethereum coin owners specifically. This will allow Ethereum transactions to take place by using only the blockchain enabled word that is linked to their wallet, thus speeding up transactions and promoting transparency. We assume this development could be used by other Crypto currencies also.

On other news, various sources are indicating the SEC is undergoing a tight investigation in brokerages that offer crypto currency trading, in an attempt to understand processes and operations in depth. SEC is investigating information regarding fees generated from trading, financing and initial coin offerings. It could also be a way to learn more on how the public has used crypto trading but also how the brokerage has served its clients during the past years were the specific assets have gained a lot of recognition and attention.

A very important point, is that money managers have described their involvement to regulators and have requested further guidance to ensure they’re complying with the law. Even though our first understanding is that these managers are not aware of how to deal with operations in these markets, in our opinion this fact could be very positive for the future. A legal framework and specific instructions will need to be set which could shield against misuse and exploitation of investments. Money managers have been prosecuted for being careless with other people’s money however, the road is slowly set to control and monitor such abusive activities in order to eliminate them completely.

Bitcoin against the US Dollar opened with a negative gap on the Monday session weakening even further. It is now moving between our $7,120 resistance level and the $6,643 support level.

If the crypto currencies is undertaken by a bullish sentiment we could see it break the $7,120 resistance level and aim higher for the $7,530 resistance barrier. On the other hand , should the digital currency drop even lower it could break the $6,643 support level aiming lower for the $6,294 support hurdle.

Bitcoin’s drop consists of a natural correction because it may display a more accurate valuation of the digital currency. Overall we see the case for a maturing process to be underway for the crypto instrument towards price stabilization.

Bitcoin stabilizes after July rally

The digital currency is a non-correlated asset very similar to metals except it’s a lot easier to transport and it can actually be used to purchase items.

In the previous days, we saw US Securities and Exchange Commission reject the bitcoin traded ETF and subsequently dropped the crypto market confidence a bit. A huge wave of news reports was released on the matter, which in our opinion is a waste of time, keeping in mind that Crypto ETFs would most probably return to claim allowance again and ultimately succeed. Very importantly, the private markets regarding digital coin investing is currently massive with huge amounts of money being invested. Bitcoin prices fell as the news was released but held upwards as the coin corrected later on.

We set off to explore some points that could have been questioned by the authorities in order to finally reject the ETF’s license. Until very recently, security among the Crypto market was of high importance and concern. Cyber theft has taken place many times in 2018, especially in Asia which also caused many people to cash out the Crypto industry stating reliability was absent. It could be the case that over half a billion USD worth of Crypto’s has been stolen in the previous years, and even though people are now keeping coins offline, security has not been restored completely .

Second, is the fact that vulnerability of crypto currency markets towards sharp price moves creates uncertainty but also an easy pray for price manipulation.
Third, the anonymity of transactions is one of the key founding principles of Bitcoin that remains a huge barrier within the industry. The absence of transparency on the distributed ledger technology is seen by some industry participants as a limitation to broader acceptance by both institutional and individual investors, but also regulators.

On another front and according to Reuters, IBM and nine financial institutions, including Barclays Plc and Citigroup Inc., are testing a platform to access blockchain-based applications. The platform, will offer services like customer compliance checks, approval and agreement details and collateral management, it was said. Ledger Connect which is the firm offering this platform, aims to promote the use of blockchain-based software to other companies.

On a separate note, according to legend trader and hedge fund owner Bill Miller there are only 17M bitcoin outstanding currently. This event is now causing more and more investors to move into areas with cheap energy costs. Areas in Northern Virginia and Dallas-Fort Worth have been acquired by firms to bring out crypto mining activities. These sites are data centers with huge energy capacities and airtight security and are very similar to rigs in the Oil industry, just these aim for Bitcoins and use megawatts as fuel. Many firms are now joining the crypto mining industry boosting demand for the digital currencies but at the same time could be enacting a huge bull market.
As a conclusion, we would like to stress the opinion that crypto currencies have the potential of becoming all these things that they are not at the moment. We could see digital coins becoming a payment method, we could see them utilized as a real currency but most importantly coins could be accepted by central banks and regulatory bodies as an innovative asset.

During the past and the current week, BTC/USD broke one of our support levels which has now turned to Resistance $8,186. This minor drop was due to the rejection of the Bitcoin traded ETF.

If traders continue to purchase BTC/USD they could force it to move even higher to the $8,186 resistance level and even surpass it aiming for the $8,580 resistance barrier. We support the opinion that, if the digital asset is to move higher, it could do it gradually and not at once as this was the case until now in previous weeks.

On the opposite side, if traders decide to sell the digital coin we could see BTC/USD break the $7,690 Support level and aim for the $7,120 support hurdle.

The other scenario is for the Crypto to remain between the $8,186 resistance level and the $7,690 Support barrier swinging from level to level. This could also be the case due to the fact that the RSI indicator is on the reading of level 50 which indicates a rather uncertain market.