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Weekly Crypto Brief 10th December

Weekly Comment 

If you hadn’t already heard, a much-anticipated Ethereum hard fork took place last week, shifting to “Istanbul”. The system-wide update came into force when the network passed block #9069000 late on Saturday night with Vitalik Buterin (co-founder of Ethereum) now claiming the potential to reach 3,000 transactions per second. Instanbul is designed to deliver interoperability with the privacy token Zcash and make it cheaper to use zero-knowledge technologies that enhances privacy. With this the majority of ETH holders or network users will be unaffected and ETH prices are unexpected to receive any changes.

In adoption news, the Bank of France is going to test a central bank digital currency for financial institutions in the first quarter of 2020. Governor François Villeroy de Galhau said the “digital euro” trial will not involve retail payments made by individuals. Alongside this statement, he made clear than any such project would “be subject to special vigilance.” The central bank has been clear that France needs to assert dominance over private initiatives such as Facebook’s Libra, with the country leading efforts to ensure that the stablecoin is stopped from launching on European soil. The governor has also spoken of his enthusiasm for being the first country in the world to issue a CBDC, allowing France to become an example to other jurisdictions.

Finally, new research published by Deustche Bank has revealed what the future might look like for crypto within the next 10 years with suggestions that digital currencies will eventually replace cash.  This comes after the demand for anonymity and a more decentralized means of payment grows within society. The authors of the report noted that the digital assets will need to “gain legitimacy in the eyes of governments and regulators” for wider acceptance to be fulfilled.

Have a great week.

 

 

Past Week Talking Points

  • Upbit hack: Stolen ETH worth millions is on the move to unknown wallets
  • “Turkey is a vibrant country that has illustrated one of the strongest demands and fast-growing interest in crypto.”- Changpeng Zhao, Binance CEO
  • US SEC approves BTC futures fund to offer shares to institutional investors
  • Former Morgan Stanley developers launch Crypto derivatives exchange
BTC Price: $7,479

Last 7 Days: +2.18%  1month: -15.39%  12months: +115.55%

 

BTC Technicals:

Over the past week, Bitcoin has remained well bid above the $7,000 support level and the price has formed a support base above $7,220 and started a decent recovery wave since. We saw the price climb above the $7,400 resistance and the 100 simple moving average (4-hours) and even surpassing the $7,500 and $7,560 resistance levels, where we noted that a high was formed near $7,630 and since, the price is currently correcting lower.

On the downside, an immediate support is near the $7,360 level. Additionally, the 50% Fib retracement level of the upward wave from the $7,084 low to $7,630 high is also near the $7,360 level. The first important support is near the $7,320 level, which was the previous breakout resistance zone and the 100 simple moving average. Therefore, a downside break below the $7,320 support could increase selling pressure on Bitcoin and bring the price further below into $7,220.

$7,220 is the next major support level and if the bulls fail to hold it here further losses could drop the price towards the $7,080 support area, below which there is a risk a drop below $7,000. On the upside, the price is facing a lot of hurdles near the $7,500 level. More importantly, there is a major contracting triangle forming with resistance near $7,520 on the 4-hours chart of the BTC/USD pair. If there is an upside break above the $7,520 resistance, the price could even rally above the $7,630 high.

BTC Volume:

2nd December: $17,082,040,706  (BTC Price of $7,321)

9th December: $15,587,693,324  (BTC Price of $7,501)

8% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

999                      999               $3.00               485%

ProChain             PRA              $0.070354       294%

CryCash              CRC              $0.062966       292%

 

 

ETH Price: $149.93

Last 7 Days: +0.78%  1month: -18.21%  12months: +65.91%

 

Ethereum Technicals:

Recently Ethereum tested the $158 resistance area, where it faced a lot of trading battles. A high was formed near $158 and the price started a downside correction soon after. It broke the $151 support level and remained well below the 100 simple moving average (4-hours). More importantly, there was a break below the 23.6% Fib retracement level of the upward move from the $132 swing low to $158 high.

However we have noticed that the $144 and $145 levels are acting as strong buy zones and the bulls are holding this level well. Besides, the 50% Fib retracement level of the upward move from the $132 swing low to $158 high is acting as a support.

A successful break and bear push below the $144 support might start another bearish run below the $140 level. The next major support is near the $132 swing low. Any further losses could lead Ethereum price towards the $125 zone.

On the upside, there are many resistances, starting with the triangle resistance near $150. If there is an upside break above $150 and $152, we could see the price revisit the $158 resistance area. In order to start a fresh increase and uptrend, the price must settle above the $158 resistance. We think the price is likely to move back up and bulls will take control and take the price of ETH above the $160 and $165 levels. The next major resistance is near the $172 level, which we think will see the bears step in to keep it in play, meaning it will take a wave of buying pressure to move further through this level.

 

 

Market Cap. Dominance:

BTC:  66.8%
ETH:  7.99%
XRP:  4.8%

Other ALT-Coins: 20.41%

 

 

This newsletter is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments  or participate in any investment (or other) strategy.