Is Bitcoin in for a Bull Run?

Companies associated with Crypto currency mining, are openly confirming that their revenues are well below the initial expectations and demand is similarly diminishing. Analysts are considering the fast drop in the digitalis coins value as the main reason for the reduced demand, which eventually turned investor attention away.

Here, a comparison could be made between other financial instruments in order to support our opinion of disagreeing with the general public, losing its confidence in coins. In 2011 the most precious and acceptable metal, Gold reached a high of $1,900 and even surpassed that price. From that year then after, Gold has gradually lost most of it value and while having some upswings has not been able to climb so high. Gold is currently trading around $1,200, and even after the strong depreciation it has gone through in the past years, it’s still considered as a safe haven and one of the most liquid financial assets. So we dismiss the general public views and statistical data regarding the crypto coins future development and in antithesis we support our view that these innovative instruments are here to stay, even under huge pressure.
Despite the fact that crypto companies have reduced revenues, some of the world’s largest bitcoin mining equipment manufacturers intend to bust a move with initial public offerings in Hong Kong. Namely, Canaan Inc and Ebang International Holdings are planning moves in Hong Kong by the next May and June respectively, while Bitmain is probable to release its plans next month for an IPO in which it targets to raise at least $3 billion, according to Reuters. Canaan and Ebang are considered as highly developed firms in technology to be applied to other cutting-edge sectors. They offer innovative blockchain applications which are currently being explored by financial institutions as well as artificial intelligence tools and the upcoming build-out of 5G telecoms networks both within and outside China.

On other news the U.S. Securities and Exchange Commission said it would review its prior decision to disqualify nine bitcoin-based exchange-traded funds from actively trading in the market. Furthermore, in the previous days SEC maintained its stance rejecting applications for new funds from three companies, amid concerns on fraud and manipulation. Another important fact on the same matter, is the case of SEC commissioner Hester Peirce who chose to disagree with the rest of the commissioner’s decision not to give license to bitcoin-based exchange-traded funds. According to her sayings SEC applied their review incorrectly as the product is being used and tested by the public and she also felt doing so, blocked innovation.

From Asia, more specifically the Chinese government, is on a mission to prevent more than 120 offshore crypto currency exchanges from further operations in the mainland. The Chinese government is pulling the handbrake on these firms and is aiming for an industry crackdown on activities related to digital money. Chinese authorities will continue to monitor and close down domestic websites promoting crypto activities and initial coin offerings and further banning payments services from accepting crypto coins, including Bitcoin.

As a conclusion, from the above analysis we understand that week by week the world is moving closer to Crypto coins acceptance as a trading instrument and as a measure of payment. While, it is under huge pursue and criticism in China, we believe with protection measures, all the clouds over the subject could disappear.

Bitcoin was in a strong upward trend today in the Asian session which the instrument appreciated by approximately $220. The upward momentum seems to persist however it could also be a sign of stabilizing at higher levels. On a broader view, BTC/USD has been on a steady rise since the 23rd of August, last week.

The RSI indicator in the 1 hour chart is over 70 but seemingly dropping implying and overcrowded long market could be ready to correct.
If the crypto currency continues to trade with a bullish sentiment we could see it breaking the $7,000 resistance level. If that resistance level is broken the digital currency could move even higher and aim for the $7,240.06 resistance barrier.

On the other hand, should the digital currency drop lower, it could break the $6,708.49 support level aiming lower for the $6,431.57 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.

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.