The Leading Alternative Currency Stories for 7th Feb 2018

The Leading Alternative Currency Stories for 7th Feb 2018

The crypto market continues to see a big sell off as authorities worldwide are mounting pressure to clamp down investments in projects related to distributed ledger technology. On Tuesday, the Committee on Banking, Housing, and Urban affairs conducted a hearing on Virtual Currencies. Jay Clayton, Chairman, U.S. Securities and Exchange Commission, provided testimony to the Banking Committee. Three vital details were present in his statement. Firstly, crypto currencies, which do not follow AML & KYC regulations will be considered illegal. Secondly, there is no possibility of allowing Bitcoin or crypto currency ETFs at this point in time due to concerns over liquidity and volatility. Finally, all ICOs will be considered as securities and should register with SEC.

The first fact clearly implies that anonymous, private currencies may see a ban soon. Secondly, ICOs will have a tough time in raising funds from the US investors. While the SEC chairman’s statement kept the crypto market weaker, the new head of Bank for International Settlements, Agustín Carstens, call for a unified action against the crypto currencies sparked another round of sell off. Read more here.

Let us look at the major developments related to the coins that command a large market capitalisation.

 

Bitcoin & Tether
Bitcoin, which is the prime target of regulators, lost about 68% of its value from the historic high of $19,704 to hit a low of about $6,000 yesterday. However, most of the crypto currency specialists are looking at developments related to Tether, a crypto currency, which is pegged to the US dollar at a 1:1 ratio. There have been concerns that Tether does not hold enough dollar reserves. Tether’s management is also a part of the Bitfinex crypto exchange. Therefore, many crypto traders have alleged that Tether is indirectly used to propel the value of crypto currencies, without enough dollar reserves. Tether has refuted the allegations in the past. The matter took an ugly turn last week when its auditor Friedman LLP was relieved of the responsibilities. Tether then hired the disgraced Madoff associates as auditors.

Sooner, Tether may have to provide a detailed auditing report. If it does not hold enough dollar reserves in accordance with the 1:1 ratio, then Bitcoin may see another round of sell off. Read more here.

 

Ethereum
Most of the decentralised applications were built on Ethereum platform. Still, the latest round of selling pushed Ether, the native currency of the Ethereum platform, to a low of about $553. That did not stop Vitalik Buterin, the creator of Ethereum, from spending money on a good cause. Buterin donated $2.40 worth Ether to the SENS Research Foundation, an institution involved in treating-age related diseases. Additionally, Buterin has also tweeted his support for Internet Archive, a non-profit digital library offering millions of free books, movies, & audio files, while asking donors to send contributions in the form of cryptos. Read more here and here.

 

Ripple
Ripple is fundamentally a very strong project. It is backed by numerous banks and soon it may replace the entire SWIFT system. However, when the crypto market is in a bad mood, Ripple gets a big hit. Yesterday, Ripple once again posted double digit losses to hit a low of about $0.51. Crypto specialists feel that Ripple is a centralised coin. That makes it a hard sell among crypto investors. Additionally, the Bitmex research team has published a report that raises several questions about Ripple’s ecosystem. Read more here.

 
 

Our Forex Trading Plan

Bitcoin . This leading cryptocurrency has been much beaten in the past few days, and a strong bounce back is expected. Technically, the charts indicate a major support at 6,000. Furthermore, the Williams’ percentage range indicator reflects an oversold scenario. Therefore, a long position seems to be the best option at this point in time.

We may open a long position in the Bitcoin through the platform offered by a Forex broker. The ideal entry and exit levels are 6,800 and 9,000, respectively. A stop loss order will be definitely placed below 5,600, in case we open a long position near the levels mentioned above.

Bitcoin- Technical Analysis - 7th February 2018

 
 

Our Binary Options Trading Plan

Ripple. Ripple bounced back strongly after touching a low of about $0.51 yesterday. However, historical charts indicate that the downtrend is far from over. The stochastic indicator is still in the bearish zone. Therefore, we prefer to bet on a decline in the Ripple coin.

We may use a binary broker’s platform to bet on a downtrend in the Ripple coin. While investing in a put option contract, we will choose a date around February 15 for its expiry. Furthermore, we will pick the contract only when Ripple trades near $0.75 in the crypto currency market.

Ripple - Technical Analysis - 7th 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.


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