The recent pros and cons of the Crypto market

The crypto market remains merely unchanged since last week as the pros and cons of the industry news reveal a somewhat stable situation of current uncertainty as to the direction the market will move.

First, FCA short for Britain’s Financial Conduct Authority, reposted its warning to Investors about crypto-currency related investment scams. This warning was first issued back in June, but the issue seems to persist, with the scammers finding new ways to trick investors into cash deposits. Making it more direct, the fraud is now enacted through the use of celebrities’ or well-known individuals which are portrayed in advertisements to be involved in crypto currencies activities. These advertisements provide links to websites for investments either using crypto-currencies or traditional cash. The fraudsters deceive potential clients by stating they operate within the UK providing also London based addresses. All the information is false as the UK authorities would have been able to locate the scammers in no time and so they actually operate outside the UK.

On other news, Nvidia Corp a NASDAQ listed company saw its shares tumbling by 5 percent in after-hours trading during past Thursday after the chip maker revealed that crypto-currency fueled demand had dropped adding its sales could be lower than Wall Street predicted. It must be emphasized that during the previous quarter, the sales to so-called miners of digital currencies such as bitcoin and ethereum was equal to $289 million, approximately 1/10 of Nvidia’s revenue. Nvidia previously had estimated that during the fiscal second quarter ending July 29 sales for crypto-currency chips would reach about $100 million. On the contrary, last Thursday it reported actual income of only $18 million.

On another front, Bitmain Technologies Ltd., a leading producer of crypto-currency mining chips, is scheduling a Hong Kong initial public offering with the potential of raising as much as $3 billion, various sources stated. The firm intends to file a listing application with the Hong Kong stock exchange as early as September. Bitmain Tech Ltd., is valued at $15 billion and is expected to control as much as 80 percent of the market for crypto mining. If the IPO progresses as planned, it would represent a major test of investor appetite for digital-currency companies.

The first self-regulatory organization for crypto-currencies is now reality. This organization aims to promote transparency in the crypto world and various crypto-currency exchanges have already signed to it. The organization is under the name of Virtual Commodity Association, with founders the very popular Winklevoss brothers of Gemini Trust Co. The first members include Bittrex Inc bitFlyer USA, Bitstamp, Inc. and Gemini. It was said that they will make a fresh start in a September meeting with clear objectives, rules and guidelines in order to keep all members on the same page. It could be the case that crypto market makers could be impatient with authorities and our now depending on themselves to improve and set standards for the industry. In our humble opinion, this is good news as the choice to rely on oneself, displays confidence and determination for further improvement.

In addition, it seems authorities are still not convinced with the Crypto backed ETFs and are still stalling up on licenses for operations in the field. However Blockchain capital partner Spencer Bogart stated the authorities are now running out of excuses not to provide licenses. Firms are now monitoring markets better and procedures are better implemented with surveillance systems.

Bitcoin against the US Dollar dropped during Tuesday’s early Asian session displaying a bearish appetite. However corrected upwards later and regained strength making up for losses. It is now moving between our $6,470.67 resistance level and the $6,366.09 support level and is approximately trading higher than last week after today’s correction.

If the crypto-currency is undertaken by a bullish sentiment we could see it break the $6,470.67 resistance level and aim higher for the $6,528.20 resistance barrier.

On the other side, should the digital currency drop lower, it could break the $6,366.09 support level aiming lower for the $6,306.16 support hurdle.

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.

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.