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Weekly Crypto Brief 14th October

Weekly Comment

More updates regarding a Bitcoin ETF have come out over the past week with The United States Securities and Exchange Commission rejecting a proposal to list a Bitcoin exchange-traded fund (ETF). In an announcement made on Oct. 9, the SEC stated that the ETF filing from Bitwise Asset Management and NYSE Arca did not meet the necessary requirements. The commission and regulators said that the applicants “did not meet the necessary requirements regarding possible market manipulation and illicit activities.”
The decision made by the SEC seems to go against recent comments from Matt Hougan, a managing director and the global head of research at Bitwise, who on CNBC on Oct. 7 said, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.” The rejection of Bitwise’s proposal follows a circuitous series of delays and requests for comment from the SEC. Back in August, the regulator postponed its decision on the proposal together with two other crypto ETF applications until Oct. 13. Bitwise initially filed its application for a rule change to U.S. securities laws in January, and it seems that the SEC are working hard to make sure that until one is ready and meets all requirements then applicants will be tested and scrutinised thoroughly on their proposals.

Staying on the topic of the SEC, it was only the other week we noted that “Kik”- the messaging platform had come under scrutiny by the commission on legal action and reported to have to pay a fine but now they have changed their focus onto another messaging application, Telegram.

The SEC has announced that Telegram and the forthcoming “GRM” token constitute an unregistered digital token offering.  On Oct. 11 a press release stated that the SEC had filed an emergency action and restraining order against Telegram and the Telegram Open Network in a complaint filed with federal district court in Manhattan. The order alleges that Telegram and TON did not register their sale of GRM tokens, which the SEC considers securities.
Since the Securities Act of 1933 requires that all securities be registered with the SEC, the agency considers the sale of GRM tokens “unlawful.” The issue appears to be that once Telegram delivers the Grams to the Initial Purchasers, they will be able to resell billions of Grams on the open market to the investing public. Telegram and its affiliates will facilitate these sales on digital-asset trading platforms. Once these resales occur, Telegram will have completed its unregistered offering with billions of Grams trading on multiple platforms to a distributed group of investors. For that reason, the SEC filed a “preliminary injunction” to prevent the initial investors from being able to acquire Grams.

Jihan Wu the co-founder and CEO of Chinese mining giant Bitmain, believes that the next Bitcoin block reward halving may not lead to a bull market, but the coin’s price will grow in the long term. According to a Chinese industry news outlet a report was published on Oct. 11, stating that Wu made his remarks during the World Digital Mining Summit held in Frankfurt.  Wu explained on the report that the crypto market moves in cycles and this time the next bullish phase may not start after the halving. He is confident that in a long-term perspective, crypto enthusiast should invest in mining hardware. He mentioned that “We are currently in a short-term correction of price. Having a long-term perspective is significant. If Bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power.”
Have a great week.

 

 

Past Week Talking Points:

  • Zuckerberg to testify before Congress regarding Libra stablecoin later this month
  • Class action accuses Tether and Bitfinex of market manipulation
  • U.S. CFTC chairman says Ether is a commodity- ETH futures coming next
  • Bakkt’s Bitcoin futures trading volume soars 796% in one day
  • Alipay to ban all Bitcoin-related transactions
  • “I would bet that Libra… let’s say, by the end of 2022, I think Libra will not have launched.” Brad Garlinghouse, Ripple CEO
BTC Price: $8,311

Last 7 Days: +0.61%  1month: -19.49%  12months: +30.43%

BTC Technicals:

Over the past week we have seen Bitcoin gain strong bullish momentum above $8,290 and $8,340 resistances. The BTC/USD pair climbed more than 5% and broke the $8,500 and $8,700 resistance levels, along with a close above $8,500 and the 100 simple moving average (4-hours). A new monthly high was also formed near the $8,920 level and later the price started to take a bearish dive into a sharp downward move.  Subsequently, the price broke $8,790 and $8,489 support levels and more importantly, there was a break below a key bullish trend line with support near $8,420 on the 4-hours chart of the BTC/USD pair. The pair even traded below the $8,350 support area.

For now we can see the price is consolidating losses above the $8,300 support area and it seems like there is a strong support forming near the $8,300 level and the 100 simple moving average (4-hours). If there is a downside break below the $8,300 support area, Bitcoin price could move back into a bearish zone. The next key support area is by  $8,250, below which it could move towards the $8,000 level. On the upside, there is a major hurdle forming near the $8,500 and $8,550 levels. A strong close above the $8,570 resistance area could set the tone for more upsides in the coming trading days. We have been in a trading channel over the past couple of weeks and we would not be surprised if we soon see a break out of this trend and into a new direction.  Which way?    We will see over the coming sessions.

BTC Volume: 

7th October: $18,009,742,607 (BTC Price of $8,245)
14th October: $14,585,603,383 (BTC Price of $8,351)

19% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1               Titan Coin             TTN                     $0.001891           659.58%
2               FuturoCoin           FTO                     $0.458142           232.72%
3               TouchCon            TOC                     $0.019251           229.61%

 

 

ETH Price: $183.22

Last 7 Days: +0.87%  1month: +1.28%  12months: -8.70%

Ethereum Technicals:

Ethereum has started a strong bull push above the $175 resistance level in recent days.  More importantly, the pair broke the key $185 resistance area and settled above the 100 simple moving average (4-hours). This opened up opportunities for more gains above the $190 resistance. Coming to a close we saw the price traded close to the $200 level and a new monthly high was formed near the $198 level.  Over later sessions there was a sharp bear run and decline in ETH and the price traded below the $183 support area. We then saw a break below a major bullish trend line with support near $188 on the 4-hours chart of ETH/USD and the price even spiked below the $182 support and the 100 SMA. In more recent times, the price is consolidating near the $180 support area, and the 61% Fib retracement level of the last major wave from the $167 low to $198 high is also protecting losses. If there is a downside break below the $180 support, there are chances of an extended bear decline towards the $175 support area in the near term. Looking upwards, bulls of the market will be met with an immediate resistance near the $186 area. If there is a successful break above this level there are chances of a fresh increase. The next resistance is near the $190 level, above which the price could continue to rise towards the main $200 resistance area. Support is currently placed around the level of $175 and the price of Ethereum is also trading in a soft pattern between the two levels as of this time.

 

 

Market Cap. Dominance:

BTC:  66.4%
ETH:  8.80%
XRP:  5.54%

Other ALT-Coins: 19.26%

 

 

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.