The latest developments in the digital market are vastly welcomed by traders and especially the fact that Bitcoin has shown some significant support. Bitcoin, the most traded of all digital instruments and the most popular, is still far away from its 2018 highs, but may have just re-enacted purchasing appetite to market participants. The recent rally that pushed Bitcoin above the 8000 pinpoint price sparked the interest for further analysis and even utilization.
The crypto market is on the verge of being accepted fully by countries and governments. More and more institutions are now willing to accept Crypto’s as an exchange method for payments or money movements. It must be made clear that, many adjustments should be made on the pre mentioned usage methods of Crypto’s so transactions are completed securely and reliably among owners. We believe this is a procedure that will be performed gradually and not all at once.
Recent news from the US, point to a crypto currency exchange traded fund which is about to be approved to begin its operations. The overwhelming majority of the public translates the news as a further progress and some people await with anticipation to invest in it. A regulatory Institution as important and essential as the SEC, is seriously taking into consideration a Bitcoin ETF, explains the change of viewpoint witnessed in the recent Crypto price activity. Despite that, the industry remains under strong disbelief by various well known figures in the financial world, urging people to be very cautious when dealing with digital assets. In contradiction to that, companies with huge reputation are considering becoming a part of the crypto market or simply creating the first action towards accepting digital assets.
MasterCard has earned a set of exclusive rights, assisting block chain users with a new type of user account, able to transact in cryptocurrencies completed by existing systems for fiat currencies. This account will be able to identify a user’s fiat currency amount, a block chain currency amount, an account identifier and an address. MasterCard claimed that by using this payment method, they may be able to evaluate the likelihood of fraud and assess risk for block chain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and block chain transaction data, credit data, demographic data, which is inaccessible for use in block chain networks.
On other news, Google announced it will collaborate with Digital Assets. Digital Assets has developed a new form of software that gives users the opportunity of creating their own block chain applications. A company with the caliber of Google is now interested on providing block chain services to its users on its, Google Cloud. If Google is looking into block chain services, it means this has been requested by many users all over the world as the search engine is widely the most popular search engine. Another fact could be the need for security within the transaction world, which no company is better than google to deal with this matter. We support the opinion that with Google, reliability and fast transactions could be restored for block chain users, consequently resolving these two big issues, users had encountered in the past.
Adopting, technology for Crypto currency transactions could be a double edged sword. If the software is able to resolve issues and improve the market it will be an advancement for the future. Crypto currencies jumped when Google announced it will work with Digital Assets. Though if for any case, problems persist and reliability is not restored, not only crypto prices will be hurt but also companies reputation will be hurt. It may be good from a business perspective as the crypto market is growing and people could use them even more boosting profits but user protection comes first and must be a priority if the market is to move to the next level.
Please be advised that Bitcoin reacted positively to the news mentioned in our fundamental analysis above. During the past and the current week, BTC/USD broke two of our Resistance levels which have now turned to support.
If further good news is released on companies utilizing block chain technologies or crypto currency as a method of payment, traders may continue to purchase BTC/USD and force it to move even higher to the
$8,580 resistance level and even surpass it. The next level could be our $8,976 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 some profit taking should apply to the recent digital asset price advancement, we could see BTC/USD break the $8,186 Support level and aim for the $7,690 support hurdle.
The other scenario is for the Crypto to remain between the $8,580 resistance level and the $8,186 Support barrier swinging from level to level. This could also be the case due to the fact that the RSI indicator is on the 70 level which indicates an overbought market.