After remaining buoyant for nearly three weeks, the cryptocurrency market went in for correction on Friday. However, blockchain technology continues to gain traction in the mainstream economy. Deloitte, one of the ‘Big Four’ accounting and consulting firms, (in partnership with the Financial Executives Research Foundation (FERF)) conducted a survey to learn how blockchain technology is being implemented in financial applications. Titled, “Blockchain for Financial Leaders: Opportunity vs Reality”, the survey indicated that 30% of financial executives are planning to commit resources to blockchain within the next year and a half.
Government agencies have also started to adopt blockchain technology. On May 8th, the state of West Virginia went to the polls, and it was the first time blockchain technology was partially used in the polling history of the US. Only military members and Americans eligible to vote absentee under the “Uniformed and Overseas Citizens Absentee Voting Act” took part in the trial.
Elsewhere in Australia, the Department of Home Affairs (DHA) is promoting the use of blockchain technology to ensure transparency and security, while conducting trade and other supply chain activities. The DHA hopes the arrival of the blockchain solution will modernize the manner in which trade is handled within Australia.
De Beers, a well-known Anglo-American diamond mining company, announced that it has successfully tracked 100 high-value diamonds from miner to retailers using distributed ledger technology. The world’s largest diamond producer is leading the industry efforts to verify the authenticity of diamonds and make sure that it is not from war zones where precious stones are used to finance the arms purchase.
Bitcoin (BTC)
Bitcoin dropped below $8,500 on Saturday, effectively pulling down the entire cryptocurrency market. There were two reasons for the downtrend. The primary reason is the raid conducted by the South Korean authorities at the head office of Upbit, South Korea’s largest cryptocurrency exchange.
The exchange is suspected to be misrepresenting its cryptocurrency holdings. Obviously, the raid caused panic and triggered a sell-off in the crypto market. The second reason is the movement of 8,200 BTC from the wallet, believed to be owned by Mt.Gox trustee, to cryptocurrency exchanges. Mr. Gox’s trustee is assigned the job of diluting BTCs at the best price by Japan’s regulators. The exchange went out of operation after a hacking incident in 2014 resulted in a loss of 850,000 Bitcoins. Read more here.
OmiseGo (OMG)
OmiseGo, which is building a decentralized exchange, clearing-house messaging network, liquidity provider mechanism, and asset-backed blockchain gateway, has announced changes to its roadmap. The OMG team will no longer include milestones related to the Cosmos DEx. Furthermore, the implementation of the decentralized exchange is split across two phases. The team is also planning to include features such as the exchange of fungible tokens, recurring payments, conditional payments, removal of confirmation messages in Tesuji Plasma, order blinding, and front-running production.
SONM (SONM)
In its monthly report, blockchain technology-based fog computing company SONM has mentioned the list of features that have been implemented or being built by its team. This includes the creation of a data warehouse (DWH), gatekeeping using centralized code, the benchmark for the worker (an executable module), the inclusion of KYC for “Registered level”, and Graphical User Interface. Notably, SONM is introducing an exclusive function, which allows the movement of tokens to and from side chains.
Our Forex Trading Plan
Bitcoin. Bitcoin (BTC) has turned weak after facing strong resistance at 9,500 levels. The cryptocurrency is also moving along the descending channel. As the price chart indicates, the next support for the cryptocurrency exists only at 6,600 levels. Therefore, it will be better to establish a short position in the BTCUSD pair.
To gain from the downtrend, we are planning to go short in the BTCUSD pair near 8,500, with a stop-loss order above 9,300. We would consider winding down our short position when the cryptocurrency declines to about 7,000.
Our Binary Options Trading Plan
Bitcoin Cash. Bitcoin Cash (BCH) is our choice of an asset to trade in the binary market. As the price chart indicates, the cryptocurrency has broken the ascending trend line, which acts as a support. Furthermore, the momentum indicator has started making lower highs. Therefore, we can expect the cryptocurrency pair to move down in the short-term.
To benefit from the probable decline, we may acquire a put option contract. We mainly require two conditions to be met for investing our surplus money. Firstly, the BCHUSD pair should be trading near $1400. Secondly, the binary broker should offer a contract that expires on or around May 22nd.
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.
