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Weekly Crypto Brief 11th November

Weekly Comment

The Russian government is reportedly pursuing a seemingly impossible law that would allow it to confiscate Bitcoin. This law is looking likely to come into place in 2021 with Nikita Kulikov, the head of a dedicated committee to the matter in Russia’s parliament saying that this is required because of “the constant growth trend in crimes using virtual assets, and the lack of consumer protection in the face of this kind of criminal onslaught.” Russia’s laws surrounding cryptocurrency has been subject to multiple delays and for this law to work in any shape or form crypto’s would be required to have legal recognition in order for the government to justify its confiscation as part of legal proceedings. But with this law being discussed, one must ask, would exchanges cooperate in handing over crypto, and if so how would authorities go about collecting coins which are protected by a private key only the holder knows?

Elsewhere, plenty of interesting information came out of Hong Kong’s Fintech Week, with the most interesting piece being the monetary authority confirming it is conducting research into applications for a central bank digital currency. The Hong Kong Monetary Authority has signed a blockchain collaboration with the People’s Bank of China, which is boasted as the first economy that will achieve such a milestone. When it comes to domestic interbank payments and wholesale corporate payments, less of an emphasis is being placed on retail use given how consumers already have widespread access to mobile payment services.

Over the weekend, Chinese authorities have confirmed in new official documents that BTC mining is not going to face a state crackdown. Previously, the practice of mining had been listed as one of the government’s targets. Last month we saw the price of Bitcoin soar when President Xi Jinping called for the adoption of blockchain technologies to be accelerated across the country. The latest announcement appeared to have little impact on the crypto markets, but is good news for the likes of Chinese mining giant Canaan Creative, which recently unveiled plans for a $400 million IPO.

Have a great week.

 

 

Past Week Talking Points

  • Her Majesty the Queen rules out crypto as currency
  • Bakkt Bitcoin futures daily trading volume hits new record — $15M
  • FBI: Crypto Is A ‘Significant Problem That Will Get Bigger And Bigger’
  • “For merchants, it is an amazing opportunity. Compared to Paypal, crypto has no credit card fees, no charge backs, no ‘Oops, we decided to hold your cash for 3-12 months while we investigate something we can’t disclose.'” Gil Penchina – Former CEO of Wikia and American Angel Business Investor
BTC Price: $8,737

Last 7 Days: -5.73%  1month: +4.95%  12months: +37.60%

BTC Technicals:

Over the past week, Bitcoin consolidated in a range above the $9,000 support, however, the bulls failed to protect its ground, resulting in a downside break below the key $9,000 support area. Additionally there was a break below a major contracting triangle with support near $9,180 on the 4-hours chart of the BTC/USD pair. It opened up space for more losses below the $8,910 support and the 100 simple moving average over 4 hours. The decline was strong and Bitcoin settled below the $8,790 level as a result of this.  Currently, the price is consolidating below the $9,000 and $8,900 levels. An immediate support is placed near the levels of $8,660 and $8,560, which bulls are expected to hold if we see it to here. If there are more bear beat ups on the downside, the price on BTC could slide towards the $8,315 and the $8,300 support levels. The mentioned $8,300 area acted as a resistance in previous times and now it is likely to provide strong support. Any further losses may push the price towards the $8,075 support. This notably represents the 76.4% Fib retracement level of the upward move from the $7,317 low to $10,578 high. On the upside, the recent support area near the $9,000 level could act as a resistance for the bulls eager to get it back towards $10,000. Besides, the 100 simple moving average over 4-hours is a major hurdle near the $9,100 level. Therefore, a successful close above $9,100 is needed for more of a convincing realistic move up in the near term.

BTC Volume:

November 4th: $26,170,255,634  (BTC Price of $9,412)
November 11th: $21,340,629,669  (BTC Price of $8,800)

18% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1. DUO Network Token          DUO              $0.077594     565.38%

2. MINDOL                             MIN                $1.24             397.11%

3.  DxChain Token                  DX                 $0.002590      291.76%

 

 

ETH Price: $185.84

Last 7 Days: -0.32%  1month: +1.52%  12months: -11.48%

Ethereum Technicals:

Ethereum has found support near the $180 level after a recent decline in price over the past few days. A decent support base was formed and ETH price started an upside correction above $183. More importantly, there was a break above the key $186 and $188 resistance levels, with the price settling above the $186 pivot level and the 100 hourly simple moving average. This opened the doors for more gains above the $190 level where a high was formed near $193 and the price is currently correcting lower. It is testing the 23.6% Fib retracement level of the recent wave from the $180 swing low to $192 high. Looking on a bearish side, there are many key supports for Ethereum by the $188 and $186 levels. Additionally, there is a key bullish trend line forming with support near $186 on the hourly chart of ETH. However the price remains well supported on the downside near the $188 and $186 levels. If the price fails to stay above the $186 support and the 100 hourly simple moving average, this would confirm a change of move back into a bearish zone. On the upside, an immediate resistance is near the $192 level. However, the main resistance is near the $195 level, above which bulls are likely to test the $200 resistance area in the near term by pushing closer towards it.

 

 

Market Cap. Dominance:

BTC:  66.1%
ETH:  8.45%
XRP:  4.98%

Other ALT-Coins: 20.47%

 

 

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.