The Leading Cryptocurrency Stories for 5th March 2018

The Leading Cryptocurrency Stories for 5th March 2018

Most of the cryptocurrencies remain range bound for the past two weeks. Still, there was no shortage of noteworthy developments. In the 10-K annual filing with the SEC, Goldman Sachs has mentioned that it faces additional risks from clients who are dealing with financial products linked to blockchain technology. While Goldman Sachs is looking at options to manage cryptocurrency related business risks, the US Department of Justice is planning to set up a cyber-digital task force to tackle threats that may arise from groups which misuse cryptocurrencies and blockchain technology. In Paris, the Financial Action Task Force (FATF) was advised by its 35 member States (plus two organisations) to set up a new global anti-money laundering policy. The FATF is expected to present the new AML policy during the next G20 meeting.

In Liechtenstein, Bank Frick started offering Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), Ethereum (ETH) and Litecoin (LTC) through its trading platform. It is the first time a European bank is offering cryptocurrencies officially. In the meanwhile, news has emerged that Rabo bank is planning to offer cryptocurrency wallet service to its clients. However, China continues to treat cryptos in a hostile manner. The government agencies have already started freezing the accounts of individuals and businesses which are offering cryptocurrency services through their contacts overseas. More details regarding Bank Frick and China’s counter against cryptos can be read here and here.

Let us have a look at the recent developments related to the top cryptocurrencies.

Bitcoin (BTC)
Germany, the economic powerhouse of Europe, has taken a positive stance towards cryptocurrencies and Bitcoin in particular. Following the ICO guidelines issued by Switzerland, Spain is currently drafting crypto friendly rules to lure blockchain related companies. A few days before, Germany announced that it will not tax Bitcoin, when used as a payment. Furthermore, it has provided tax exemptions to miner rewards and cryptocurrency exchanges. On the dark side, news has emerged that North Korea has obtained at least 11,000 Bitcoins, worth about $120 million, in 2017. Read more about Germany here and North Korea here.

Ripple (XRP)
Last week, the San Francisco-based Ripple announced that it has entered into a partnership with Cambridge Global Payments, a global provider of commercial payment solutions. Under the partnership, Cambridge will test the xRapid platform for making international payments. Cambridge handles about $20 billion worth payments annually and has more than 13,000 clients. Ripple also announced that a consortium of 47 banks in Japan has successfully tested Ripple and is ready to implement it by the fall of this year. Read more here and here.

Syscoin (SYS)
Syscoin is based on a fork of the Bitcoin protocol and is merge-mined with Bitcoin, making it one of the most secure, stable and scalable networks to exist in the crypto arena. Syscoin offers near zero cost financial transactions, incredible speed and provides businesses the infrastructure to trade goods, assets, digital certificates and data securely.

The Syscoin ‘Blockmarket’ Wallet offers features to send and receive Syscoin, keep transaction logs in order, buy and sell items, resell others items, send encrypted messages to others and more. The Syscoin ‘Blockmarket’ wallet will never face any downtime or service outages. The native currency SYS is currently trading at about $0.70 in the major cryptocurrency exchanges. The coin is gaining popularity among investors. Read more here.

 

Our Forex Trading Plan

Litecoin. The price chart of Litecoin indicates a major resistance at 226. The cryptocurrency is also forming a symmetrical triangle pattern. Therefore, we can expect Litecoin to decline in the short-term.

In order to gain from the downtrend, we may go short in Litecoin through the platform offered by a Forex broker. We prefer to open a short position near $210, with a stop loss order above 230. Simultaneously, we would pace an order to book profit near 160.

Litecoin - Technical Analysis - 5th March 2018

Our Binary Options Trading Plan

Bitcoin. As the price chart indicates, Bitcoin is slowly and steadily gathering momentum. It is trading above the 50-day moving average.

Furthermore, the moving average of oscillator is above the zero reading. Thus, we expect Bitcoin to continue moving upwards. The cryptocurrency has strong support near 10,000. The next major resistance is expected near 15,000.

As the probability of coming down is less, it would advantageous to trade a call option, rather than buying Bitcoin in the cryptocurrency market. The returns would be higher, if the cryptocurrency moves up higher, as expected.

We may place our bets on a call option when Bitcoin trades near $11,000. Furthermore, the option contract should remain active for a period of one week.

Bitcoin - Technical Analysis - 5th 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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