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Weekly Crypto Brief 18th November

Weekly Comment 

BlockShow Asia 2019 was held in Singapore last week which had some very interesting pieces of news to take from it.  Binance’s Changpeng Zhao was among the speakers and he predicted that the central bank digital currency being developed by China will be based on Blockchain. Zhao explained how Beijing wants to push the influence of the renminbi globally in order to make it competitive with the U.S. dollar.  He said:  “Having is better than not having. Having stablecoins is better than not having them. Having Libra is better than not having it.” Zhao’s appearance followed President Xi Jinping’s calls for China to accelerate its adoption of blockchain – and the exchange boss said those who were laughing at blockchain aren’t laughing now.

In other news India’s proposed, controversial ban on cryptocurrency is being delayed. The draft bill was expected to be introduced in parliament in the winter session that takes place between Nov. 18 and Dec. 13. Crypto businesses and consumers in the country have expressed concern because the law proposes jail terms of up to 10 years for those found dealing in digital currencies. Indian exchanges have welcomed the delay urging campaigners to forget competition and ego, and to present their case to regulators in a “united fashion.” Others have said the delay proves that the government is listening and potentially revaluating its position, a proposed lift of this ban could result in a much more positive effect for the crypto space especially in other countries where the local currency may be going through a tough time.

Finally, it would appear that a Crypto criminal has been caught.  Konstantin Ignatov, the co-founder of the crypto scam OneCoin, has pleaded guilty to participating in the multibillion-dollar fraud. As part of a plea deal, he admitted a multitude of charges, including money laundering and fraud. He is facing up to 90 years in prison and has yet to be sentenced, but will reportedly face no further criminal charges for his role in OneCoin, except potential tax violations. OneCoin is known as a major crypto exit scam, and the Bulgarian-based firm remains fully operational despite allegations it raised $4.4 billion in a Ponzi scheme.

Have a great week.

 

 

Past Week Talking Points

  • Bitcoin ATMs Worldwide hit new milestone, surpassing 6,000
  • BBC: New files allegedly connect $450M in lost Bitcoin to Russian intelligence
  • Artificial Intelligence will enable the future, Blockchain will secure it
  • “99% of a [token’s value] is linked to speculation, and not to the value that solution can bring to society. This causes many startups to waste a lot of time producing and ‘selling’ the token, failing to develop solutions for where they were initially focused.”  Sunny Lu, VeChain founder
BTC Price: $8,616.37

Last 7 Days:  -3.23%  1month: +6.47%  12months: +62.50%

BTC Technicals:

In the past week, we watched as Bitcoin took onboard an increase in selling pressure below the $8,880 support area.  In addition to this, the price of BTC settled below the $8,700 pivot level and the 100 simple moving average (4-hours). The price even broke the $8,600 and $8,500 support levels. A new monthly low was formed near $8,380 and the price is clearly trading in a bearish zone from this confirmation.
Moving to today the price of BTC is currently recovering from losses above the $8,400 level. On the upside, there are many resistances near $8,562 and $8,600. There is also a bearish declining channel forming with resistance near $8,580 on the 4-hours chart of the BTC/USD pair. If there is an upside break and bull run above the channel resistance, the price could test the $8,620 and $8,630 resistance levels in the near time, increasing gains further. However there is a crucial bearish trend line forming with resistance near $8,630 on the same chart.
To move into a positive zone, bulls will need to take the price above and beyond the $8,700 and $8,720 levels. With a proper close above the $8,880 resistance we will have confirmation that a trend change has occured.  On the downside, there are many key support levels for the bulls to sit at, these are placed near the $8,320 and $8,200 levels. The bears are likely to face a strong buying interest near $8,200, below which there is a risk of a break down towards the $8,000 mark.

BTC Volume:

November 11th: $20,265,510,765  (BTC Price of $8,757)
November 18th: $17,991,482,374  (BTC Price of $8,651)
11% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1.   Fusion                      FSN                  $1.26                    267.26%
2.   adToken                   ADT                  $0.009704            233.78%
3.   Silent Notary            SNTR               $0.000005            228.49%

 

 

ETH Price: $182.72

Last 7 Days: -1.76%  1month: +5.40%  12months: +16.05%

Ethereum Technicals:

Ethereum found strong buying interest near the $178 level, and as a result the price of ETH started an upward move above the $180 and $182 levels. More noticeably, the price broke the $185 resistance and the 100 hourly simple moving average. However, the upward move was capped by the $186 resistance area and bears took back control. A high was formed near $186 and the price is currently correcting lower towards $183 (it broke the 23.6% Fib retracement level of the recent wave from the $177 low to $186 high.)

Main support is near the $180 level, below which the price is likely to revisit the $178 level.  On the upside, Ethereum price is still struggling to climb above $186, $188 and $190 resistances, these have been noted and seem to be well guarded by the ETH bears. More importantly, there are two major bearish trend lines forming with resistance near $186 on the hourly chart of ETH/USD. If there is a clear break above both the trend lines, the price is likely to make a move to surpass the $188 resistance area. However, a clear break and close above the $190 resistance is needed for a sustained move higher in the near term, and confirmation that the bulls have regained control.

 

 

Market Cap. Dominance:

BTC:  65.9%
ETH:  8.5%
XRP:  4.8%

Other ALT-Coins: 20.8%

 

 

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.