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Weekly Crypto Brief 24th June

Weekly Comment:
As we approach the end of the first half of 2019, and with a great month to date for crypto, it’s time to look forward into the crypto space and what may be to come. Last week Facebook unveiled its new cryptocurrency called Libra. It is expected to launch in 2020 or later and will be a stable-coin (I.e. won’t fluctuate much as it will be supported by established government-backed currencies and securities.)

Facebook published a 12-page white paper on Libra which includes more than 20 well known partners for the crypto project. With Facebook and the word crypto being used very closely to each other it is important to understand that Libra is not technically a cryptocurrency.  It is better to compare it to a peer to peer payment network such as PayPal, Venmo or even Western Union. Libra will be layered on top of the existing financial system as each coin will be backed by traditional money in the bank to support the stable price. It is worth mentioning that Facebook may have to avoid regulation obstacles on the way to their full launch but with the partners on board and the team behind the coin, it would be hard to bet against Libra Coin becoming the next big thing in the crypto space.

Elsewhere, a representative of the Russian Ministry of Finance says the ministry is considering allowing cryptocurrency trading in the country. While MinFin had reached no final decision, cryptocurrency trading may be allowed in the coming bill on the circulation of cryptocurrencies in the Russian Federation. It was only last year in May that a law was lifted enabling crypto assets as a means of payment in the Russian Federation.

Meanwhile, and in contrast-  cryptocurrencies will not receive wide use in Australia as long as the financial system is working efficiently, the Reserve Bank of Australia stated in an official document issued on June 20th. According to the notice there is “little likelihood of a material take-up of cryptocurrencies for retail payments in Australia in the foreseeable future” due to a number of reasons. It mentioned that volatility is one of the main obstacles for the RBA’s decision on crypto becoming implemented into the financial system within Australia along with their outlook that cryptocurrencies have not developed enough to represent a “compelling proposition that would lead to their widespread use in Australia”.  However in recent times Australia’s securities regulator released a new initial coin offering and cryptocurrency guidelines meaning that crypto’s are deemed to be somewhat of a financial product in the country’s eyes.

Finally, the recent squeeze in prices is most definitely raising the profile of crypto and Blockchain back into mainstream once more.  Financial media outlets are once again pushing content and commentary on the space with greater frequency, and mainstream media is also increasing content in this area.  It may still be too early for the real “retail” market volume to be getting back into crypto, however if the media coverage continues and Bitcoin especially tests back up towards the $15,000 mark- the FOMO (Fear of Missing Out) will grow thus pushing prices even higher.  At the beginning of the year we forecast that 10,000 USD per coin would be a reasonable expectation for 2019 given the severity of the Crypto-winter.  Now, at the half-way point to the year we have exceeded those expectations, and given general sentiment the second half of the year points towards more upside potential.

Have a great week!

 

 

Past Week Talking Points:

  • Satoshi Nakamoto is the apparent author of two upcoming books on Amazon
  • Ripple to invest up to $50M in MoneyGram following new partnership
  • “Even if we offer similar services in the future it will still be for the better, since there will be more competition in the finance industry.” – David Marcus, head of blockchain at Facebook.
  • Google searches for ‘Bitcoin’ starting to catch up with $10K euphoria
 

BTC Price:  $10,830

Last 7 Days: 17.13%  1month: 35.10%   12months: 72.32%

Last week saw a strong bull push in Bitcoin above the well-respected $10,000 resistance level, with a further break of $10,500, settling above the 100 hourly simple moving average. With this push a new 2019 high was formed above $11,250 at $11,291. Shortly after this there was a downside correction with a break back down through $11,000 which was acting as a support level.

This correction pushed through a major bullish trend line breaking down passed $10,600 before bulls re-engaged and took control at $10,500 with a swing low forming near $10,520. Immediate resistance can be found at $10,900 however with a push through this $11,200 would be the next level to watch. Main supports are standing at $10,550 and $10,620 with major support sitting at the $9,960 pivot level. It looks like the bulls are still well in control with where the BTC market is going and a push towards $11,250 is likely in the coming days with a target set for $11,600-$12,000.

BTC Volume:

17th June: $15,562,951,919 (BTC Price of $10,855)

24th June: $20,692,115,213 (BTC Price of $10,830)

32% increase in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers:

1              Zenon        ZNN          $12.32                  658.61%
2              XMax         XMX         $0.002437            607.49%
3              MSD          MSD         $0.017672            354.50%

 

 

ETH Price: $306.61

Last 7 Days: 12.79%  1month: 21.42% 12months: -33.97%Similarly to Bitcoin, Ethereum had a good week with a major upward move through the $280 resistance level.  From here, the move continued through $290 and $300 barrier, settling well above the 100 simple moving average, and with bulls in control a new 2019 high was set at $315. Multiple positive signs are showing above $305 and $300 with a major ascending channel in place with support near $305 on the 4-hour chart (below this, the next important support is near the $300 level.) On the upside initial resistance is near $318 and $320 and with a break of this level we would be looking at $340 as the next target.

 

 

Market Cap. Dominance:

BTC: 59.2%
ETH: 10%
XRP:  6%

Other ALT-Coins: 24.8%

 

 

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.