The Leading Cryptocurrency Stories for 30th April 2018

The Leading Cryptocurrency Stories for 30th April 2018
April 30, 2018

The cryptocurrency market saw a minor, healthy sell off last Thursday. However, the downtrend did not last long and the market bounced back on Friday. Many analysts have forecast a strong uptrend in the second quarter of 2018. Despite a steep decline in the cryptocurrency prices in the first quarter, many cryptocurrency exchanges have done well. Coincheck, the Japanese cryptocurrency exchange, which lost $533 million worth MEN (XEM) coins to hackers in January, posted a profit of ¥53.2 billion (~$490 million) between April 2017 and January 2018. Following the hacking incident, Coincheck was acquired by Monex Group Inc. Despite the hacking incident, Coincheck has done marvellously in terms of profit generation. By comparison, Japan Exchange Group, which operates major equity and derivative markets in the country, generated a profit of ¥71.80 billion ($657m) in the fiscal year ended March 2018.

Advanced Micro Devices (AMD), which manufactures graphic chips used in cryptocurrency mining, posted an impressive 40% increase in sales to $1.65 billion in the first quarter of 2018. The company expects the demand from miners to continue in the second quarter. Two years back, AMD was struggling, with its share price trading below $2.  The strong demand for cryptocurrency mining chips enabled the company to post an operating income of $120 million, up from $11 million a year ago.

The optimism expressed by AMD was echoed by Dan Morehead, CEO of $1 billion cryptocurrency hedge fund Pantera Capital Management LP. In an interview with Bloomberg, Morehead said the market capitalisation of all cryptocurrencies put together can increase to even $40 trillion, from the current level of $400 billion. 

Now for an overview of the trending cryptocurrencies this week:
Bitcoin (BTC)
Earlier last week, the price of Bitcoin came close to $10,000. However, selling pressure pushed it down along with other cryptocurrencies. Nearly 16,000 Bitcoins were sold by the trustee of the now defunct cryptocurrency exchange Mt.Gox. The trades were completed in multiple cryptocurrency exchanges, despite repeated requests from the cryptocurrency community to use over-the-counter market. The average selling price is believed to be $9,700, resulting in the realisation of $165 million from the sale.

It is a well known fact that there can be only 21 million Bitcoins in existence. The 17 millionth Bitcoin was mined last Thursday. It would take another 122 years before the last Bitcoin is mined. Nearly 980,000 coins are held by Satoshi Nakamoto, the pseudonymous creator of Bitcoin. Read more here and here. 
Ripple (XRP)
Ripple added five more payment processors to its list of clients last week. This includes UK based firms RationalFX, FairFX, and Exchange4Free. Other payment processors, which have joined the Ripple network are UniPay from Georgia and P2P currency exchange platform MoneyMatch from Malaysia. These payment processors will be using the xVia platform of Ripple to improve efficiency and reduce costs. Ripple is slowly turning into a world leader in facilitating cross-border payments with their blockchain technology based real-time gross settlement system. Read more here.

Our Forex Trading Plan

Bitcoin Cash. The cryptocurrency market quickly recovered after a minor correction on last Thursday. However, Bitcoin Cash (BCH) is facing heavy resistance near 1460 levels. Furthermore, the stochastic oscillator is making lower highs. So, we are expecting a downtrend to begin soon.

By going short in the BCHUSD pair, we are planning to generate profit from the probable downtrend. We may open short position near 1440, with a stop loss order above 1520. On the downside, we would place an buy order near 1140 to exit the short position with a considerable profit.

Bitcoin Cash - Technical Analysis - 30th April 2018

Our Binary Options Trading Plan

Ethereum. Ethereum is making a rounded bottom pattern on chart, as shown in the image below. The cryptocurrency has also broken above its 50-day moving average, Therefore, it is our choice of asset to trade with a binary options broker.

We prefer to benefit from the analysis by investing in a call option contract. While selecting the appropriate contract from a binary broker’s platform, we will look for an expiry date around May 8th. Furthermore, we may buy the contract with our surplus funds, only if ETHUSD pair is trading near $690 in the cryptocurrency market.

Ethereum - Technical Analysis - 30th 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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