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Weekly Crypto Brief 21st October

Weekly Comment

The other week we mentioned the topic of Telegrams Token being questioned by the SEC and a lawsuit which was taking place over the violation of security laws. Well it looks like the legal battle is going to go on longer than expected as a district court in New York has said that the next hearing will be held on February 18th and 19th 2020, whilst the defendants have been ordered not to “offer, sell, deliver, or distribute” Gram tokens until the proceedings are concluded.  All of this has come only a week after the initial announcement of the alleged violation of securities laws during its initial token offering which raised an estimated $1.7 billion. Investors now have the decision whether they are prepared to delay the launch of the Telegram Open Network until April 30 2020, a decision that they need to make by Wednesday!

In other news, Facebooks very topical project Libra has had some surprisingly positive PR from a prominent public figure over the past week with the Bank of England’s Mark Carney defending the social networks decision to pursue its digital currency. While the majority of other banks have come out firmly against Libra, the governor said Facebook is simply trying to address the shortcomings in the traditional financial system that have loitered around for too long. Carney is in full belief that modern day transactions should be instantaneous, virtually costless and 100% resilient, all factors which have thus far proven elusive in the digital age.

Finally, Binance’s CEO has made a recent statement on the subject of BNB (Binance Coin) following its recent bearish move, dropping more than 50% from the all-time highs it achieved back in June. This was despite Binance generating estimated revenues of $185 million in the third quarter of 2019. While CZ took note of the fear, uncertainty and doubt swirling around in the industry recently, the CEO added “I think our results out-shine them all, yet the price of BNB did decline. Markets often confuse people, even me sometimes” Could this be the low for BNB Coin? It wasn’t long ago that the coin was sought after and trading sessions closed higher and higher each day.  Binance have also recently announced the ability for users to trade up to 125x leveraged on their platform which they feel will also be popular and generate revenue, although given the high risk involved with leveraged trading, the saying that springs to mind is: “What could possibly go wrong……?”
Have a great week.

 

 

Past Week Talking Points:

  • HTC launches Exodus 1S, the first phone that can run a full BTC node
  • G20 finance leaders state that Stablecoins present serious regulatory risks
  • Fidelity Investments fully rolls out crypto custody service, according to an exec
  • Craig Wright: “either I’m Satoshi Nakamoto, or he plagiarized me”
  • “This Friday, the 18 millionth Bitcoin will be mined, meaning there are only 3 million left”  Anthony Pompliano, Morgan Creek Digital Assets co-founder
BTC Price: $8,219

Last 7 Days: -1.54% 1month: -17.96%  12months: +28.49%

BTC Technicals:

In recent days Bitcoin has followed a bearish trail below the levels of $8,400 and $8,220 and has settled below the $8,200 support and the 100 simple moving average (4-hours). There was also a break below the $8,000 support and a new monthly low was formed near $7,820. The price is currently correcting losses and is trading just above the $8,000 support at $8,200. On the upside, there are many obstacles near the $8,300 and $8,500 levels, whilst on the downside, the key support is near the $7,850 level. If there is a downside break below the $7,850 support, then there is a risk of further losses towards $7,200. Bitcoin’s momentum is clearly trading in a bearish zone although whilst we have just recovered above $8,000 we will need a convincing break above $8,500 to confirm a full change of mood for the traders in the market, if not we will see the support below $8,000 tested in the near term.

BTC Volume:

14th October: $15,151,387,859 (BTC Price of $8,374)
21st October: $15,596,628,666 (BTC Price of $8,244)

3% increase in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1              ATBCoin                   ATB                          $0.002397            222.42%
2              Acute Angle Cloud   AAC                          $0.005222            129.93%
3              Whole Network        NODE                       $0.012083            103.14%

 

 

ETH Price: $174.28

Last 7 Days: -6.48% 1month: -19.31% 12months: -13.49%

Ethereum Technicals:

Ethereum has been faced with an increase in selling pressure below $185. As a result, there was a downside break below the $180 support area in recent days with a close below $180 and the 100 simple moving average (4-hours). This opened avenues for more losses and the price traded below the $175 level. Finally, the price dipped further and fell through $170, testing the key $168 support area. A swing low was formed near $169 and the price is currently correcting back above $170.

There is a crucial bearish trend line forming with resistance near $174 on the 4-hours chart of ETH/USD. If there is an upside break above the trend line, the price could recover towards the $178 resistance level.  More importantly, the 50% Fib retracement level of the recent decline from the $188 high to $168 low is near the $178 level and the 100 SMA to act as a strong resistance. The main hurdle for the bulls and bears to pull between would be near the $180 level. Therefore, a successful close above $180 and the 100 SMA is needed for Ethereum’s price to start a strong recovery and a full change of trend. The price could recover towards the $185 and $188 resistance levels. On the downside, the main support is near the $168 zone. If there is a bearish break below $168, the price could extend its decline. The next support is near the $160 area, below which the price may perhaps test the $150 support structure.

 

 

Market Cap. Dominance:

BTC:  66.6%
ETH:  8.5%
XRP:  5.6%

Other ALT-Coins: 19.3%

 

 

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.