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Weekly Crypto Brief 4th November

Weekly Comment
BitMEX has already started November off on a bad foot after a mass email leak. The crypto derivatives exchange reportedly accidently leaked its users’ email addresses by forgetting to BCC them on a mass message. Crypto lawyer Jake Chervinsky described the company as “outrageously incompetent” amid fears that account holders could now become vulnerable to hackers as details are leaked. As if matters couldn’t get any worse for BitMEX, days later their twitter account was hacked with hackers putting out tweets on their page such as: “Take your BTC and run” and “last day for withdrawals”.  An anonymous twitter account has also emerged which has apparently leaked users IDs and emails!  For its part, the exchange says it takes user privacy seriously and that it is working to understand the extent of the leak, but this will amount to yet another dent in consumer confidence when it comes to trading via exchanges alongside the substantive costs.

Elsewhere, the U.K. has recently updated their crypto taxation guidance, stressing that cryptos like Bitcoin are neither currency nor securities.  Her Majesty’s Revenue and Customs (HMRC) states that it generally does not consider cryptocurrencies such as Bitcoin to be either currency or “stock or marketable securities,” which largely exempts these cryptocurrencies from stamp taxes. However, tokens used in debt transactions are still subject to stamp taxes, according to the guidance. HMRC also requires businesses to keep records of cryptocurrency transactions in pounds sterling and additionally keep records of the valuation methodology for these transactions. Furthermore, businesses are also expected to record the amount spent on each type of exchange token.

Finally, it looks like cryptocurrencies will soon be taught in schools, with an announcement made last week that high school students in France are going to start learning about cryptocurrencies in classrooms, with an introductory course helping teenagers to understand the impact that BTC has on the economy. Although it is unlikely that fully fledged crypto experts will emerge from this module, the lessons could put valuable knowledge within reach of young adults that will become increasingly relevant as cryptocurrency adoption grows. Explainer videos that will be shown to students ask whether Bitcoin is the currency of the future and whether the world’s largest cryptocurrency has the potential to replace the euro. Thousands of shops across France now accept Bitcoin, but developments such as Facebook’s Libra have been met by firm resistance from some of the country’s politicians, including finance minister Bruno Le Maire. Nevertheless this is a positive step forward in education for the crypto space and could be the start to lessons across the world, teaching young adults the ins and outs of cryptos and how they may shape their future.

Have a great week.

 

 

Past Week Talking Points

  • Bitcoin price will see $16,000 ‘soon-ish,’ predicts Binance CEO CZ
  • Binance.US now lets users buy Cryptocurrency with debit cards
  • Coinbase data shows that Bitcoin has outperformed S&P 500 since 2013
  • “In order to maintain Europe’s competitiveness, satisfy customers’ needs and reduce transaction costs, the introduction of euro-based, programmable digital money should be considered.”  The Association of German Banks
BTC Price: $9,207

Last 7 Days: -2.49%  1month: +13.61%  12months: +43.71%

BTC Technicals:

In the last week, there was a much slower and steadier decline in bitcoin below the $8,450 support. More importantly the BTC price also traded below the support areas of $8,220. Finally, it spiked below the key mark of $8,000, but remained well above the 100 simple moving average of 4 hours with a swing low forming near $7,955. From here, there was a break above the $8,110 and $8,220 resistance levels to start a strong bull push and positive increase in trend. This allowed for a break above a key contracting triangle with resistance near $9,235 on the 4-hours chart of the BTC/USD pair. If the bulls keep pushing at these levels we could see the price rise towards the $9,500 and $9,660. Besides, the main resistance is near the $9,770 level and this represents the 50% Fib retracement level of the downward move from the $10,584 high to $8,960 low. On the downside, there are many support levels which are placed between $9,200 and $8,960. If there is a bearish push below the $8,960 swing low, there are chances of a sharp decline. The next key support for the bulls and bears to play with is near $8,600. Therefore, the $8,500 and $8,600 support levels are likely to play an important role for the next key trend change for bitcoin if it gets down there. As long as the price is above the $8,510 support, there are chances of a fresh increase above the $9,500 level in the near term.

BTC Volume:

28th October: $30,948,255,332 (BTC Price of $9,256)
4th November: $20,631,872,671 (BTC Price of $9,237)

33% decrease in trading volume in the last 7 days

 

 

 

1                  adToken                   $0.010574                  253.69%
2                  BAAB                   $0.000101                  210.73%
3                  Sessia                   $0.330908                  125.93%
 

 

ETH Price: $182.86

Last 7 Days: -0.29%  1month: +4.68%  12months: -12.03%

Ethereum Technicals:

Ethereum has been trading in a range above the $178 support level over the past week. The price of ETH made a couple of attempts to start a fresh increase, but was faced with a strong resistance near the $185 and $186 levels. The last swing high was near $186 before the price was pushed by bears below the $182 and $180 levels. Over the past week there was a noticeable close below the $182 support and the 100 hourly simple moving average. From this a low was formed near $178 and the price is currently correcting higher. There is a key bearish trend line forming with resistance near $182 on the hourly chart of ETH/USD. Therefore, a bullish break and push above the $182 resistance might push the price of Ethereum higher. Looking higher up the main resistances and hurdles for the traders of ETH are near $185 and $186. A strong clear break above $186 is needed for upside acceleration in the near term. On the downside, an immediate support is near $180. If there are more downsides, the price could revisit the range support area near the $178 level. A bear fight below the $178 support could spark more losses towards $175 and $170 in the near term.

 

 

Market Cap. Dominance:

BTC:  67.3%
ETH:  8%
XRP:  5.12%

Other ALT-Coins: 19.58%

 

 

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.