The cryptocurrency market ended the week on a high note as Bitcoin rallied about $8,000, trapping bears off guard. While the overall sentiment has turned slightly bullish, there were minor incidents that caused concerns among cryptocurrency traders.
Firstly, users of hardware wallet Ledger has been facing issues in completing Bitcoin Cash (BCH) transactions. Some of them were unable to see their BCH balances. Ledger identified an issue with its main infrastructure and is trying to fix it.
Secondly, when the cryptocurrency market fell sharply in January, many of the credit card companies, including JP Morgan banned the purchase of cryptocurrencies using their card. Additionally, without providing any kind of update to users, JP Morgan Chase allegedly overcharged the customers who had used their credit cards to purchase cryptos, just before the ban was implemented. JP Morgan Chase stated that it considered crypto transactions like cash withdrawals. A customer of JP Morgan has filed a lawsuit demanding a reversal of charges. Additionally, he has also claimed $1 million as charges for the trouble caused to him.
Meanwhile, in Russia, two men were arrested by law enforcement agencies for not paying electricity bills after their crypto mining farm, with more than 6,000 devices, consumed several million kilowatts of electricity.
Let us now look at the important developments related to major cryptocurrencies:
Bitcoin (BTC)
According to mining hardware retailer MyRig, Samsung has started manufacturing ASIC (Application Specific Integrated Circuits) for the mining hardware manufacturer Halong Mining. ASIC chips are built to perform a specific function. In this case, it is cryptocurrency mining. Halong owns the Draonmint T1 brand, which is arguably the most efficient miner that outperforms the popular Antminer S9 of Bitmain.
However, the owner of Bitcoin.org and Bitcoin Talk has refuted the claim. According to Fortune, most of the US residents, who hold cryptocurrencies, may have diluted their positions in order to generate enough cash to pay their taxes and this has sparked a reversal in Bitcoin. Read more here
Ethereum (ETH)
After remaining bearish for more than a month, Ethereum (ETH) has bounced back above the psychological level of $500. Ironically, one of the main reasons for Ethereum to rally is Golem (GNT), which is often referred to as Airbnb for computers. Golem enables users to rent free CPU in exchange for GNT cryptocurrency. It is also the first cryptocurrency to use ETH for their ICO. There are about 800 million GNT tokens in circulation.
Verge (XVG)
Verge is a cryptocurrency, which aims to fulfill the initial purpose of providing individuals and businesses with a fast, efficient, and decentralized way of making transactions while maintaining personal privacy. Having been improved and integrated with the Wraith Protocol technology, Verge users are now able to effortlessly switch between private and public ledgers on the Verge blockchain.
Furthermore, using Simple Payment Verification technology, transactions are confirmed in 5 seconds. Verges offers five different Proof-of-Work algorithms for mining: Lyra2rev2, Scrypt, X17, blake2s, and myr-groestl. The network switches between these five algorithms to avoid domination by any particular miner. Ironically, one hacker was able to find a bug in the program and took control of the network for about 3 hours last week.
The coin has been making headlines for both positive and negative reasons in the recent past. Still, negative news had practically no lasting impact on the price of the cryptocurrency. From a low of 3 cents, Verge has gained more than 300% to hit 10 cents last week. Many experts believe that the coin will touch $1 soon. Read more here.
Our Forex Trading Plan
Dash. The strong recovery seen in the cryptocurrency market in the past few days indicate that selling will not resume anytime soon. Therefore, opening a long position seems to be ideal at this point in time. Our choice of crypto pair to trade is DashUSD. The price chart indicates strong support at 288. Furthermore, the momentum indicator is making new highs. Therefore, we can expect an uptrend to begin soon.
We wish to establish a long position in the DASHUSD pair near 350. A stop-loss order would be certainly placed below 290. If we are able to open a long position as desired, then an order to book profit will be placed near 440.
Our Binary Options Trading Plan
Ethereum. After remaining bearish for almost a month, Ether has started rising. The historic price chart indicates the ETHUSD pair is trading above its 50-day moving average. Furthermore, the ascending MACD indicator also confirms bullishness in the ETHUSD pair. Therefore, we can expect the ETHUSD pair to rally further in the days to come. Therefore, Ethereum is our choice of asset to trade in the binary market.
Using one of our binary option trading accounts, we may invest in a call option, which is valid until April 24th. The option contract may be bought only if the ETHUSD pair trades near $450 in the cryptocurrency market.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
