The Leading Cryptocurrency Stories for 23rd April 2018

The Leading Cryptocurrency Stories for 23rd April 2018
April 23, 2018

For the third week in a row, the cryptocurrency market remained bullish last week. Most crypto gurus believe that it is the beginning of a big bull market. It is quite impossible to forecast precisely about cryptocurrencies as even minor unexpected news can result in big movement sometimes.

Speaking of unexpected news, Dow Jones Media Group announced its partnership with Brave browser, which is known for providing total privacy by blocking ads and stopping all methods of tracking. Under the partnership, both companies will experiment with blockchain based technology in media and advertising. In return, Brave browser will give a verified publisher status to Barrons and MarketWatch. Interestingly, users who download and install Brave browser will be given access to premium content of Barrons and MarketWatch for a limited period of time.

In Canada, a consortium of banks has successfully completed the first live trade finance transaction with corporate clients using custom built platform named ‘Batavia.’ The platform was built on the IBM blockchain.

In the UK, Matt Hancock, a British Conservative Member of Parliament (MP), stated that blockchain will have a “monumental impact” on the lives of people. While giving a speech at the Law Society, Hancock further stated that blockchain could “solve some of the greatest social challenges of our time”.

While banks and financial institutions seem to have no problem in accepting blockchain technology, they are against cryptocurrencies. For example, Mastercard – who rejected LitePay only a few months back – is hiring more blockchain developers. Furthermore, it has also filed a patent to combat fake identities with blockchain technology. 

Now, lets catch-up on this week’s biggest alt-coin news:

 

Bitcoin (BTC)

For the first time in 2018, Bitcoin registered back to back weekly gains. The king of cryptocurrencies gained 29% in the past two weeks, putting equity market gains to shame. Three reasons are given for the appreciation. Firstly, the end of US tax selling season has removed the pressure on Bitcoin. Secondly, over the past few months, a record short positions have been built on Bitcoins. The winding down of the short positions is probably driving the prices higher. Thirdly, big institutional investors such as Rockefeller Foundation and Soros Fund Management have expressed their interest in cryptocurrencies. There are as many as 250 US-based hedge funds, which are investing or looking for opportunities in the cryptocurrency market. Obviously, none of the funds can discard Bitcoin while investing in the cryptocurrency market. This has turned Bitcoin extremely bullish. Read more here and here. 

 

Bitcoin Cash (BCH) 

In the past one week, Bitcoin cash has appreciated by more than 50% to cross above $1000 mark. The cryptocurrency is set to undergo a protocol upgrade on May 15. Some of the features that will be incorporated are scalability (block size is increased to 32MB), replay protection, and facility to deploy smart contract on the Bitcoin Cash blockchain. Read more here. 
 
 

Our Forex Trading Plan

 
Bitcoin. After a non-stop rally for the past two weeks, Bitcoin is showing some signs of weakness. The cryptocurrency is facing resistance at 8900. Furthermore, the momentum indicator has made a negative divergence with the BTCUSD pair. So, we can expect a minor correction in the cryptocurrency pair.

To gain from the technical correction, we may go short in the BTCUSD pair near 8900, with a stop loss order 9200. On the downside, the cryptocurrency has a major support at 8100. So, we would prefer to place a buy order near 8150 to exit our short position.

 

Bitcoin - Technical Analysis - 23rd April 2018
 
 

Our Binary Options Trading Plan

Bitcoin Cash. The upcoming hard fork has turned Bitcoin Cash (BCH) stronger against Bitcoin (BTC). The stochastic oscillator has entered into bullish zone. Furthermore, the next resistance for the cryptocurrency pair is only at 0.1810. Therefore, it is wise to maintain a long position in the crypto pair.

In order to gain from the possible continuation of the uptrend, we are planning to invest in a call option. Before setting aside our surplus money to invest in an option contract offered by a binary broker, we would make sure that the cryptocurrency pair trades near 0.1370. Furthermore, the call option contract should remain active for a period of at least one week.

 

Bitcoin Cash vs. Bitcoin - Technical Analysis - 23rd April 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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