Crypto Market regains super powers

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.

The Crypto industry makes progress but still has a long way to go

Cryptocurrencies appreciated in value this week and did not hesitate to extend their rebound on Wednesday as Bitcoin price is now above $7,500 for the first time since June. Rival cryptocurrencies like Ripple, Etherium and Litecoin also followed the positive trend however Bitcoin remains deeply below its all-time high in the previous December. It is very obvious that some positive and productive developments in the finance world have created this bullish movement for cryptos and the advancement it is not by chance nor trend.

According to reports, the CFA institute has added Crypto currencies as a subject in its professional examination and the subject will be studied in depth by the program participants. CFA is a very serious and professional institute and is among the top qualifications in the finance industry. The qualification, which a very small number of people hold on a global scale, is a vast source of knowledge broken down in several modules which all together could be referred to as the finance bible. The qualification is a series of difficult examinations in which the candidate is required to sacrifice greatly and study consistently. Make no mistake, these examinations are very demanding and the person qualified as a Certified Financial Analyst is considered as privileged somewhat. Now, in order for this Institute to add Cryptocurrencies as a study subject, it must mean that this financial instrument has reached a level of significant awareness and it no longer belongs to a so called bubble or scam as portrayed by many. It also means, that future qualified CFA’s most probably could be required to give Cryptocurrency investment advice or perform in depth studies on the topic. It also exemplifies the fact that such an important institute recognizes digital currencies importance and dominance in the financial world. Of course, an opinion on Crypto’s will come solely to the person’s critical thinking and individuality, when it comes to giving advice.
On a separate note, IBM will be partnering with U.S.-based financial services provider Stronghold in order to support a new digital coin called Stronghold USD which will belong to the group of stable coins. Stable coins are digital assets that follow other financial instruments like major Currencies or Metals and imitate their movements. Stronghold USD, will be pegged to the US dollar and clients will deposit in USD in order to purchase the coin. Stronghold USD’s main use will be aimed to help financial company’s fulfill their payments and transactions faster and safer. Foreign exchange matters could also be removed as applications that use block chain and stable coins become more mainstream. Companies like IBM with massive reputation and experience getting involved with cryptos and block chain technology, could be a trick down the sleeve for the industry. It could most certainly remove negative publicity towards digital currencies, and help restore confidence in the near future.

Moreover, we have noticed a strong change of mind towards cryptos lately. More investors are now open towards considering coins. For example, Chief Executive Officer of Blackrock Larry Fink said in an interview with Bloomberg that their firm is currently researching crypto coins. Though, Fink was quick to state that they have not come across investors interested in Bitcoin, the fact that they want to learn more about how the instrument works is the first step to making progress in this industry.

As a conclusion and to keep it completely sincere, we must stress the fact that a lot has to be done so that digital coins become a recognized way of exchange. Even though we are not completely ready yet to let go of our real money and traditional ways of trade, the day when transaction will be done only between the purchaser and the seller, without a third party involved, could be getting closer.

Bitcoin with its latest rally broke two of previous resistance levels now turned to Support $7,120 and $6,700.

Should the digital currency continue its upward movement, it could move towards the $7,690 resistance level and break it aiming for the $8,186 resistance area.

The crypto coin could also remain in a sideways movement between the $7,690 resistance level and the $7,120 Support level.

Should Bitcoin come under selling interest, the coin could drop to the $7,120 Support level and aim for the $6,700 Support barrier. $6,700 has been tested various times in the past and is considered a strong support level.

Is Bitcoin going to continue to drop?

Bitcoin was on a bearish mood for the past week after a number of negative headlines. Media suggested that the Securities and Exchange Commission wants additional cryptocurrency plattforms to be registered and subject to additional regulatory rules. On other news, Japan decided to push the cryptocurrency money laundering rules as an issue in the G20 agenda. Also, Google announced that it will ban cryptocurrency and initial coin offerings advertisement form June on. On the bright side, Coinbase seems to be striking a deal with Barclay’s about opening an account. Any further headlines about further regulation could weaken the crypto-currency.

Bitcoin has been trading in a sideways manner since Thursday, well between the 8650 resistance line and the 7425 support line. Please note that the pair has broken the downward trend line incepted since the 6th of March, strengthening technically the case for further sideways movement in the next couple of days. Should the bulls gain the upper hand on Bitcoin we could see it breaking the 8650 resistance line. Should the bears take the reins we could see the cryptocurrency breaking the 7425 support line.