The Leading Cryptocurrency Stories for 12th March 2018

The Leading Cryptocurrency Stories for 12th March 2018

After staying range bound for over two weeks, the cryptocurrency market started declining last Wednesday. The main reason for this decline was the US SEC’s announcement demanding registration of all cryptocurrency trading platforms. According to SEC, if a cryptocurrency trading platform provider do not consider themselves as exchange, then a registration as Alternative Trading System provider is required to receive an exemption. In either case, the exchanges need to adhere to stringent rules stipulated by the SEC. Secondly, nearly 80 companies who have raised money for their projects through ICOs have received subpoenas from the SEC. Thirdly, a US court has upheld CFTC’s (Commodity Futures Trading Commission) stance of considering cryptocurrencies as commodities. That means, CFTC will have the right to monitor and take action against individuals or companies which are believed to be involved in illegal activities. Elsewhere in Japan, the FSA (Financial Services Agency) issued a temporary suspension order to two cryptocurrency exchanges, while slapping a fine on four more exchanges. The crackdown on the cryptocurrency market has pushed down all the digital assets in the past few days. More details about SEC’  subpoenas, court ruling in favour of CFTC, and FSA’s action on cryptocurrency exchanges can be read here and here. 

 

Bitcoin (BTC): Bitcoin has once again fallen below $10,000 level, driven by bearish sentiment that has arisen due to subpoenas issued by the SEC. Investors are also on the sidelines because Nobuaki Kobayashi,  the Tokyo based attorney and bankruptcy trustee of the now defunct Mt.Gox exchange, has revealed that he had sold about $400 million worth BTC (& Bitcoin Cash) since late September and still holds about $1.90 billion worth BTC for offloading. The average price at which Kobayashi sold the previous tranche was $10,500. For the next few months, we may see Bitcoin trade around $10,000 levels. The crypto may see a big relief rally only after Mt.Gox’ attorney offloads the coins held in escrow. Read more here.

 

Ethereum (ETH): Ethereum has remained bearish since February due to two main reasons. Firstly, Ethereum network suffers from scalability issues. The network can perform about 10 transactions per second. Its competitor Stellar (XLM) claims to process up to 1,000 operations (each operation may include more than one transaction) per second. NEO (NEO) network can process up to 10,000 transactions per second. Therefore, projects such as Tutellus, Guardium, etc., has migrated from Ethereum to other suitable networks. Ethereum creator Vitalik Buterin is yet to reveal the date of launch of Casper update, which could likely resolve the scalability issues. Secondly, Cardano (ADA) continues to pitch itself as a better alternative for Ethereum and several crypto specialists agree with that point of view. Therefore, rising competition from other platforms and scalability issues have turned Ethereum bearish. Read more here. 

 

Ripple (XRP): Ripple has turned extremely weak in the past few days, despite signing an agreement with Cambridge payments to pilot test its fund transfer platform. In fact, the number of deals signed by Ripple in the past two months is mind boggling. The list includes MercuryFX, IDT Corp., MoneyGram, Western Union, Satander, Lian Lian, the UAE exchange, the Central bank of Saudi Arabia, and IndusInd bank, among others. Even a consortium of 47 banks in Japan recently confirmed that they will start using Ripple by the fall of this year. However, Ripple never recovered after falling from a high of $3.84 in January. Ripple is pitted as a competitor to SWIFT, which remains the undisputed king of the cross border fund transfer platforms for the past four decades. To counter competition, last month, SWIFT launched New Payments Platform (NPP), which facilitates real-time payments.  The NPP, which was launched to serve domestic customers in Australia, will be soon launched worldwide. Additionally, SWIFT has also completed blockchain proof of concept to address Nostro reconciliation issues. All these factors have a negative impact on Ripple. Read more here and here. 

 

Our Forex Trading Plan

Bitcoin Cash. Bitcoin Cash (BCH), which was created by hard fork of Bitcoin (BTC) network, has declined nearly 80% from the peak price of about $4090. The cryptocurrency has a strong support around 1,000 levels. Furthermore, the momentum indicator has crossed above the reading of 100. Therefore, we are expecting Bitcoin Cash to rally in the days ahead.

To gain from the uptrend, we may establish a long position in Bitcoin Cash. The position may be opened through a trading platform offered by a suitable Forex broker. An entry near 1,020 will minimise the risk. We would still place a stop loss order below 875, while placing an order to book profit near 1,500.

Bitcoin Cash - Technical Analysis - 12th March 2018

Our Binary Options Trading Plan

Dash. Following the actions that are being taken by the SEC, Dash (DASH), the anonymous cryptocurrency, looks weak. The moving average of oscillator is extending in the negative zone. Therefore, we are expecting Dash to lose value further.

By investing in a put option, we are planning to capitalise on the impending downtrend in the Dash coin. We prefer to purchase an option contract from a binary broker, when Dash trades near 510 in the cryptocurrency market. Furthermore, we would choose a date around March 20th for the expiry of the contract.

Dash - Technical Analysis - 12th March 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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