The Leading Cryptocurrency Stories for 10th Jan 2018

The Leading Cryptocurrency Stories for 10th Jan 2018
January 10, 2018

The crypto currency market is in a nascent stage of growth. Thus, even rumors and developments which are fundamentally unrelated to crypto currencies have a huge impact on the prices. How, most crypto specialists expect the industry to get matured this year. Notably, Facebook creator Mark Zuckerberg has announced that his company will study crypto currencies and try to integrate in the social media platform. His Facebook post can be read here.

The developments related to Bitcoin indicate the industry may be soon considered on par with equity markets.

 
 
Bitcoin
The implementation of SegWit (Segregated Witness) in August have started making a positive impact on the transaction confirmation fees paid to miners. Due to the scalability issue, Bitcoin transaction confirmation increased from approximately 30 minutes to several hours. For quick confirmations, traders have to pay a higher fee. Last month, the transaction fee increased to as much as 1,000 Satoshis per byte. Now, several Bitcoin users have started using SegWit addresses, which allows faster and cheaper (upto 6x) transactions. As of date, only 10% of transactions are from SegWit addresses, which usually begins with 3. The transaction fees for Bitcoin transmitted from non-SegWit addresses have already fallen to about 500 Satoshis per byte (the best transaction fees can be checked here).

In other news, the New York Stock Exchange has sought approval from regulators for launching Bitcoin Futures ETFs (Exchange Traded Funds). That indicates the interest shown by Wall Street in Bitcoin. Read more here, and also here
 
Ripple
After rallying to a high of about $3.80 last week, the block chain platform used by banks for global fund transfer is seeing a huge sell off. The market capitalisation of Ripple has fallen from over $100 billion to about $80 billion. In doing so, it has lost the second place to Ethereum. The decline is attributed to government actions taken on crypto currency exchanges in South Korea, which usually contributes to the majority of trading volume. The market is also seeing profit booking from heavy hitters who had entered at extremely low levels. A year back the coin was trading at less than a cent in the crypto market. Read more here. 
 
Ethereum 
It is one of the well known crypto currencies, which was not affected by the sell off that happened a day before in the crypto market. Ether briefly fell below the psychological level of $1,000, but quickly bounced back. At the time of writing this, Ether is trading near the crucial Fibonacci resistance level of 1280. Correspondingly, the market cap has almost doubled in the past two weeks to $137 billion. The introduction of the Casper PoS testnet facility on December 31 is one of the main reasons for Ether to remain resilient to shocks in the crypto market. Further, Ethereum is becoming the preferred choice of DApps (Decentralised Application) developers. Read more here. 
 
Dogecoin 
Dogecoin was created as a joke by forking the Litecoin network. It was intended to serve as a tipping coin. When social media platform users come across any valuable information, Dogecoin was gifted as a token of appreciation. The coin hit a high of $0.0179 to record a market capitalisation of over $2 billion this week. Read more here.
 
Tether
It is a controversial project offering a dollar and Euro pegged token. One USDT will always be equal to one US dollar. Similarly, one EURT will always be equal to one Euro. The coin is now accepted by several exchanges. It is used to circumvent the laws related to the US dollar. A security breach that happened in November resulted in a loss of $30 million worth tether. However, Omni Protocol, the platform on which tether was deployed, quickly updated the system and froze the coins. Earlier this week tether has announced a transition to Ethereum network, citing lower fee and faster confirmations. Read more here. 
 
 

Our Forex Trading Plan

Ethereum Classic. The original token of the Ethereum chain is trading at about $36. We anticipate a big rally to begin in the coin due to two reasons. Firstly, the rise of Ethereum will certainly influence Ethereum Classic as both share several similar features. Secondly, Ethereum Classic developers have announced that Emerald Project, which is expected to resolve the issue of transaction verification in a trustless way, is near fruition. Thus, we expect a rally in the ETCUSD pair.

Technically, the ETCUSD pair is trading above the 50-day moving average. Further, the positive reading of the moving average of oscillator also confirms bullishness in the crypto currency pair. Thus, we anticipate a rally to begin soon, and to gain from the uptrend, we wish to go long in the ETCUSD near 34, with a stop loss order below 30. A profit booking order will be placed near 42.

 

Ethereum Classic - Technical Analysis - 10th January 2018

 

Our Binary Options Trading Plan

Bitcoin.  Although it remains range bound between 12,000 and 17,000, Bitcoin is now descending after touch 17,000 level on Sunday. The stochastic oscillator is also descending towards the bearish zone. Thus, we expect the BTCUSD pair, which is currently trading at about 14,400, to decline further.

To profit from the probable downtrend, we are planning to invest in a put option valid for one week. The option will be bought from a reliable binary broker, when the BTCUSD pair trades near 15,000 in the major crypto currency exchanges.

Bitcoin - Technical Analysis - 10th January 2018

 

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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