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Weekly Crypto Brief 28th October

Weekly Comment

In recent news, Chinese President Zi Jinping has made comments surrounding the crypto space that may excite many in the market.  On Thursday, the president of China called for the country to “accelerate its adoption of blockchain” and said doing so would be essential for technological innovation and transforming industries. Jinping cited clear direction on future strategy, as well as increased investment, as other ingredients for success. There is a long standing distain towards crypto’s in China, where ICOs and crypto exchanges have been banned, and mining could potentially follow in suit.  Therefore this contradictory rhetoric has taken many by surprise and excites as it potentially signals a real seed change in attitiudes over in China.

Elsewhere last week, Mr Mark Zuckerberg was faced with a six-hour Libra grilling from Congress in Washington D.C. The Facebook CEO received questions upon questions from the United States Congress, mostly from lawmakers who remain aggressive towards the social media’s stable coin. Zuckerberg warned innovation is essential if America is going to remain a global financial leader, especially considering the growing competition from China.  Interestingly, whilst this session was intended to be focussed around Project Libra, some congress members used their allotted five minutes to criticize Mark instead. Rep. Brad Sherman was especially dismissive and said cryptocurrencies either displace the U.S. dollar or cause investors to lose a lot of money.  Others were also quick to question Libra’s real motives for the move claiming that their dreams of helping the unbanked and the poorer demographic of the world were more than suspicious, particulalry when Facebook has- to date, not shown any interest in donating or supporting causes to help the poorest demographics in America  Overall it seems that very little has changed, meaning the standoff between Facebook and Washington will carry on, and prolonging the uncertainty about Libra’s launch date.

Have a great week.

 

 

Past Week Talking Points

  • Bakkt’s Bitcoin futures volume explodes 260% to trade $11M in 24 Hours
  • UAE accepts Crypto regulation with Blockchain projects standing to benefit
  • Galaxy Digital CEO and founder Michael Novogratz has hinted at a new Bitcoin fund, with unconfirmed reports predicting a November launch
  • “Nothing within Libra had to be a cryptocurrency to do what they wanted to do.” Jack Dorsey, Twitter CEO
BTC Price: $9,380

Last 7 Days: +14.13%  1month: +15.70  12months: +48.16%

BTC Technicals:

Over the past week, there has been a sharp rally in the price of bitcoin above $7,500 and $8,000 resistance levels, even surging higher above the $9,600 and $10,000 levels before correcting lower into the close. Later, the price corrected below the $9,500 support and the $8,900 pivot zone. However, the decline was stopped by bulls below $9,000 and the price remained well above the 100 hourly simple moving average. A low was formed near $8,890 and bitcoin started a new increase once again breaking the $9,000 and $9,200 resistance levels. Alongside this there was a break above the 50% Fib retracement level of the downward correction from the $10,570 high to $8,890 low, however we can see that the price seems to be facing strong resistance near $9,850 and $9,900 respectively.

At present, the price is steadying and is moving towards the $9,500 support line and if there is a downside break below the trend line, the price could extend its downside correction towards the $9,200 level. Any further losses may perhaps push bitcoin price towards the $8,750 support area. Equally, if the price continues to rally higher, it could climb above the $9,850 and $9,900 resistance. The main hurdle currently is near the $10,000 mark, above this, the price is likely to climb towards $10,500.

BTC Volume:

October 21st: $15,868,748,866  (BTC Price of $8,196)
October 28th: $37,274,234,952  (BTC Price of $9,399)

134% increase in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

1              Cryptonex           CNX                       $2.08                    596.80%

2              Ulord                    UT                         $0.032053            245.48%

3              Bytom                  BTM                       $0.149179           161.03%

 

 

ETH Price: $184,66

Last 7 Days: +5.90%  1month: +7.40%  12months: -6.89%

Ethereum Technicals:

In recent times, with the market having a shock move to the upside, there was a sharp rally in Ethereum above the $175 and $180 resistance levels. Not long after we saw there was a suitable downside correction after the rally, but the price remained well bid above $175 and the 100 hourly simple moving average. The recent swing low was near $174 before Ethereum started a fresh increase. It broke the $181 and $183 resistance levels before testing $190 which is one of the resistance levels, where the bears are putting up a strong fight against the bulls. An upside break above the $190 resistance is likely to open the doors for more of a bear rally in trading sessions to come. The next major resistance is near the $197 and $200/203 levels. On the downside, there are many supports near the $180 level. It is wise to note that there is a rising channel forming with support near $181 on the hourly chart of ETH/USD. If there is a downside break, the price could test the 100 hourly SMA or the $175 support.

 

 

Market Cap. Dominance:

BTC:  67.7%
ETH:  8%
XRP:  5.15%

Other ALT-Coins: 19.15%

 

 

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.