The cryptocurrency market continues to slide with an increasing apprehension that Bitcoin could drop below $5,000. Notably, several altcoins are trading near an 8-9 month low. This downtrend was also fuelled by a Wall Street Journal report exposing price manipulating practices. Another harsh statement criticizing cryptocurrencies by the JP Morgan CEO led to the fall. We shall review these details in this article.
JPMorgan Chase’s CEO Jamie Dimon is a known critic of cryptocurrencies. While speaking at the Aspen Institute’s 25th yearly Summer Celebration Gala, the CEO didn’t miss the chance to turn the heat on crypto tokens. Dimon said that cryptocurrency is a “scam” in which he had no interest, but that he appreciated blockchain – the underlying technology of cryptos. He further stated that only fiat payment apps cause a major disruption to their business. Notably, Dimon called Bitcoin a “fraud” in September 2017.
A report published by Wall Street Journal exposes the huge amount of price manipulation that is going on in the cryptocurrency sector. According to the news publication, several “pump & dump groups” have generated a trading volume of over $825 million in the first half of this year. Furthermore, the report points out that at the time of research, there were 175 different price rigging schemes linked to 121 cryptocurrencies.
LedgerX, a regulated Bitcoin futures exchange, stated that it has seen a dramatic rise in Bitcoin trading volume over the past two months. The exchange did a trading volume of $50 million in July. Furthermore, the platform also executed the largest trade as of date for a $15,000 strike call expiring in December. Last month, the platform has also launched a facility to purchase Bitcoin.
Coinatmradar, a portal that gathers information regarding ATMs across the globe has revealed that the number of Bitcoin ATMs is 3508 units. Notably, 8 Bitcoin ATMs are installed every day. Litecoin takes the second position with 1738 ATMs. It is followed by Ethereum with 1121 units, Bitcoin Cash with 814 units, Dash with 424 units, Monero with 63 units, Zcash with 44 units, and Dogecoin with 39 units.
Bitcoin (BTC)
Cryptocurrency skeptics always allege that Bitcoin is mainly used by drug traffickers and money launderers. However, a statement issued by the US Drug Enforcement Agency (DEA) has shattered that argument. Lilita Infante, DEA special agent said that 10% of on-chain Bitcoin transactions only account for criminal activity. Furthermore, it has declined from nearly 90% in 2013 when the US government dismantled the dark web network, referred to as Silk Road. Infante also stated that law enforcement agencies can easily track blockchain data and identify the users. In the case of privacy-focused cryptos such as Monero and ZCash, the liquidity is too small. So, according to Infante, DEA is not too bothered about it as of now.
Ethereum Classic (ETC)
Ethereum Classic has been defying the overall bearish trend in the past. While Ethereum, Cardano, IOTA, and Tron were declining, the cryptocurrency has gained about 15% to reach $20. The cryptocurrency has been range-bound between $15 and $20 for several months. With this price rise, the coin has toppled IOTA to become the 10th largest crypto by market capitalization. The cryptocurrency is going to be listed in Coinbase by this month-end. Furthermore, commission-free brokerage firm Robinhood has already added the cryptocurrency to its trading platform.
Our Forex Trading Plan
Litecoin. Litecoin is trading near 62, which is technically a major support level. The stochastic oscillator is in the bearish zone. Therefore, we are expecting the cryptocurrency to move up in the short-term.
To gain from the uptrend, we are planning to open a long position near 62, with a stop-loss order below 56. We are targeting a level of 92 to book profit.
Our Binary Options Trading Plan
Ethereum. Ethereum is trading near the multi-week support level of 380. Additionally, the RSI indicator is in the oversold region. Therefore, we are expecting a bullish reversal of the ETHUSD pair.
To benefit from the impending bullish reversal, we are planning to invest in a call option offered by one of our reliable binary brokers. The option may be bought when the ETHUSD pair trades near $380 in the cryptocurrency market.
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.
