The cryptocurrency market continues to stay bullish, following the reversal last week. There were some notable developments in the past few days. Barclays, which is one of the banks that advocated against the cryptocurrencies earlier this year, is now having a dialogue with its clients to determine whether to open a cryptocurrency trading desk. According to the bank, there are plenty of hedge funds that are looking for a bank to handle transactions.
In the US, Coinbase, which acquired Cipher Browser last week, made another acquisition, rather large, this week. The cryptocurrency exchange acquired Earn.com for $100 million. Earn.com is a paid email and social media network. The app users are paid in Bitcoin. The CEO and founder of Earn.com, Balaji Srinivasan, was made the CTO (Chief Technology Officer) of Coinbase.
Fortune 500 company Cognizant (Nasdaq: CTSH) has partnered with a consortium of Indian insurance companies to develop a blockchain solution that will facilitate data-sharing. This would prevent the risk of data breaches, money-laundering, and fraud. The insurance companies will also be able to serve their customers better as blockchain technology would ensure better record-keeping, improve process efficiency, and accelerate turnaround time.
In other news, IBM is partnering with Marsh L.L.C to produce the first commercial blockchain proof of insurance.
Now, let us visit the stories related to major cryptocurrencies:
Bitcoin (BTC)
Christine Lagarde, head of the International Monetary Fund, has said that Bitcoin and other digital assets could make the world’s financial system safer. In a blog post, she has mentioned that enterprises that use Bitcoin could coexist with traditional banks. Crypto skeptics often make fun when investors speak about the adoption of Bitcoin.
A post on Reddit saying “the first signs of Bitcoin going mainstream” triggered a challenge among crypto enthusiasts to share pictures of stories accepting Bitcoin in their own countries. It is definitely worth to have a look at those pictures. Another argument, which is often made by skeptics, is that Bitcoin is used for illegal purposes. The argument is blown away by a report released by “The Foundation For Defense of Democracies”. The report claims that less than 1% of Bitcoins in circulation are used for illegal purposes.
Our Forex Trading Plan
Bitcoin Cash. As the price chart indicates, Bitcoin Cash (BCH) has started rising after testing strong support at 630. The MACD histogram also has a positive reading. Therefore, we are expecting the BCHUSD pair to rally further. The next major resistance for the cryptocurrency pair is only at 870.
In order to gain from the uptrend, we may use one of our Forex trading accounts to open a long position in the BCHUSD pair. We would look for an opportunity to open the long position near 765, with a stop-loss order below 720. We would book profit by diluting the long position near 850 levels.
Our Binary Options Trading Plan
Dash. Dash, the anonymous private currency, is our choice of an asset to trade in the cryptocurrency market for two reasons. Firstly, the DASHUSD pair has a strong resistance only at 430 levels. Secondly, the RSI indicator is above the reading of 50. This indicates bullishness in the DASHUSD pair. Therefore, we can expect a continuation of the current uptrend.
To profit from the uptrend, we are considering investing in a call option, which is valid for a period of one week. We prefer to establish a trade when Dash trades at about $350 in the crypto 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.
