The Leading Cryptocurrency Stories for 5th Feb 2018

The Leading Cryptocurrency Stories for 5th Feb 2018
February 5, 2018

The crypto currency market plunged on the first day of this month, following Facebook’s decision to ban advertisements related to crypto currencies and ICOs. The selling pressure increased after India’s finance minister Arun Jaitley stated that the government may take necessary steps to avoid using crypto currencies for illegal activities. The media spread FUD (Fear, Uncertainty, and Doubt) with headlines mentioning that the government of India is planning to ban crypto currencies as a whole. Bitcoin and other crypto currencies recovered in the weekend, as clarity emerged about the statement from the finance minister of India. There is a genuine feeling among investors in the crypto currency market that powerful investors who have missed the opportunity to invest in Bitcoin and other crypto currencies are using their influence on mainstream media to create fear in order to trigger a crash so that they can enter at lower levels. Let us look at the major developments related to important coins.

 

Bitcoin
Due to the numerous hacking incidents, investors are advised to store Bitcoin and other crypto currencies offline. Paper wallets are a great option to keep the crypto currencies in a safe manner. However, it is always better to avoid using an unknown online source for this purpose. Recently, CryptoStorage, an open source and free to use online solution to create paper wallets has been launched. All the private keys are generated in the user’s browser and no information is sent to third parties. Furthermore, it supports multiple currencies (Bitcoin Cash, Dash, OmiseGo, Litecoin, Zcash, Monero, Ethereum Classic, etc.) other than Bitcoin.

While the Bitcoin was hammered down below $8,000 levels, Square Cash, a company which facilitates mobile payments of fiat currencies announced that it has started facilitating the purchase and sale of Bitcoins. Jack Dorsey, the CEO of Square Cash is also the CEO and founder of Twitter.

The main handicap faced by Bitcoin network is scalability, and Lightning Network is expected to change the situation. Last week, the number of Lightning Network payment channels reached 1000.Read more here and here.

 

Ethereum
Ethereum platform continues to remain the primary choice of decentralised application developers. In this regard, ConsenSys, a block chain software technology company that assists individuals and businesses to harness the power of Ethereum, has announced that it will work with the European Commission on its EU Blockchain Observatory and Forum to apply the knowledge of block chain technology for the benefit of the EU market. Read more here.

 

Ripple
2018 hasn’t been kind to the real-time gross settlement platform Ripple. The native currency XRP fell to a low of about $0.60 on last Friday. In the first week of January, Ripple (XRP) coin touched a high of about $3.80. Despite the fall, many crypto specialists believe that Ripple is the dark horse among crypto currencies in 2018. It is backed by a consortium of over 100 banks, business enterprises, tech giants, and financial institutions. On Friday, Spanish banking group Santander rolled out a Ripple-powered App in four countries. The mobile app is based on xCurrent platform of Ripple. Read more here.

 

Status (SNT)
While the entire crypto market was painted in red, SNT, a token representing Status, an Ethereum light client designed to bring the benefits of block chain to everyday smartphone users, gained around 19% to trade at $0.23. Both Android and iOS versions of Status is available for smart phone users. Status facilitates browsing, chatting, and making payments (send, receive, and store) on the decentralised web. The developers released the next alpha version 0.9.13 on iOS and Android, a few days earlier. Additionally, they have provided details about the progress of the project. It is one of the most watched crypto currencies. Read more here.
 
 

Our Forex Trading Plan

Bitcoin. The altcoin has bounced back after touching a low of around 7,600 on Thursday. However, fundamentally, all the positive developments are offset by negative propaganda. Technically, Bitcoin looks bearish on charts. It is facing significant resistance at the current level of around 8,800. The stochastic oscillator is still in the bearish zone. Therefore, we believe that it would be wise to go short in the current scenario.

We prefer to open a short position near 8,200, with a compulsory stop loss order above 9,500. The short position will be covered near 6,700 where the next major support exists.

Bitcoin - Technical Analysis - 5th February 2018
 
 

Our Binary Options Trading Plan

Ether. After managing to stay above $1,000 for most of January, Ether, the native currency of the popular Ethereum platform, has broken the major support level of about 980. The stochastic indicator has also entered into the bearish zone. Therefore, we can expect Ether to decline further to reach the next major support level of 660.

We may trade the decline in the price of Ether, by investing in a put option. The option should be valid for a period of one week. Furthermore, the ETHUSD pair should be trading near $850 in the crypto currency market.

 

Ethereum - Technical Analysis - 5th February 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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