Hong Kong is set to tighten regulations on cryptocurrencies, with plans to put exchanges, traders and other related companies under the oversight of the Securities and Futures Commission.
With less stringent rules on digital currencies than mainland China, where all crypto-related commercial activities are effectively banned, Hong Kong has become a thriving market for initial coin offerings. But growing concerns over fraud and money laundering have prompted the regulator into action.
According to the SFC’s guidelines, investment funds will be required to obtain a license if more than 10% of the assets they manage are made up of bitcoin or other cryptocurrencies, and will be allowed to sell related products only to professional investors.
Under the voluntary scheme, exchanges will be able to test virtual currency products or services temporarily in a “regulatory sandbox” before deciding on whether to seek a license.
The proposed regulations, which are to be implemented in stages, will also mean that companies can only issue ICOs for tokens that fulfilled SFC’s requirements. For instance, the tokens must have existed for at least 12 months.
In February, the SFC sent warning letters to seven local exchanges after receiving complaints from investors claiming they had been unable to withdraw fiat or cryptocurrencies from their accounts. Certain exchanges were accused of misappropriating assets or manipulating the market.
In March, the commission ordered Black Cell Technology to halt its ICO and charged the company with conducting unauthorized promotional activities.
Hong Kong’s actions reflect a growing trend. The Group of 20 leading economies is considering ways to regulate virtual currency assets as part of the global fight against money laundering.
As a financial center closely linked to mainland China, Hong Kong is taking steps in the right direction with measures like requiring identity verification for transactions, said Daisuke Yasaku of the Daiwa Institute of Research.
But the “cost of regulations will be high,” he warned.
Depending on the design of its platforms, an exchange can be required to report frequently to the authority and subject to rigorous inspections and monitoring, Yasaku pointed out.
“The requirements of the SFC initiative may prove too burdensome for some operators”, said Timothy Loh, who manages a law firm in the territory. Some will decide not to join the new framework in order to maintain their current shares in the market.
Some argue that higher trading costs also risk discouraging institutional investors from entering the market, dampening hopes that their presence will help stabilize it. The counter argument is that tighter regulations may lead to greater investor confidence over the long run.
NEO’s Upgraded dBFT Consensus Mechanism Improves Stability and Reliability
The NEO team, which is hard at work building the Smart Economy of the future, has unveiled a key step in its move towards the NEO3 upgrade, releasing version two of its delegated Byzantine Fault Tolerance mechanism – dBFT 2.0 – on its MainNet.
The consensus mechanism has been improved to guarantee immediate transaction finality and includes a recovery method to help failed nodes on the NEO network get back online with minimal disruption.
Through the addition of the commit phase of consensus which forces nodes to commit to a single new block, the problem of forked blocks has been eliminated. This makes the network much more stable and transactions “truly irreversible,” a vital component for the commercial use of the NEO blockchain.
This is different from rival blockchain, Ethereum, which currently uses an energy-intensive Proof of Work model to achieve consensus and relies on ‘miners’ to produce and validate blocks, creating the opportunity for transaction reversal due to forks.
Erik Zhang, founder, core developer of NEO, and author of its original dBFT protocol, noted the significance of the move as another step towards the full launch of NEO’s next major upgrade, NEO3. This optimized protocol is touted for release in 2020 and aims to make the NEO blockchain ready for large-scale commercial applications such as YouTube, Alipay, or WeChat. He said:
“With this improvement, dBFT will have more strict finality. Users only need to wait for one confirmation (15 seconds) to ensure the irreversibility of the transactions and prevent double-spending. This is very suitable for financial applications.”
Analytics: BSV, BNB, LTC, BCH and DASH
Instant messaging service Telegram reportedly plans to launch its Telegram Open Network (TON) in the third quarter of this year. It has created a new programming language called Fift, which will help develop and manage TON blockchain smart contracts and interact with the TON Virtual Machine.
On the other hand, Facebook is allegedly planning to launch its own cryptocurrency in early 2020. The company expects its large user base to start using its cryptocurrency in a dozen countries for making purchases, transferring money and more. Mark Zuckerberg, the founder and chief executive of Facebook, has reportedly discussed the project with U.S. Treasury officials along with Mark Carney, the governor of the Bank of England.
Bitcoin bull Michael Novogratz believes that one of the crypto assets created by the above-mentioned companies is likely to be successful and can even have a “chance to be a real currency.” He also reiterated that the “crypto winter is over” in comments this week. And, according to token rating platform ICObench, the ICO sector is showing a higher success rate as the sentiment improves.
Bitcoin sv (BSV) was the best performer among the major cryptocurrencies with a rally of above 60% in the past seven days. The boost came amid the news that nChain founder Craig Wright had filed United States copyright registrations for the Bitcoin white paper and the original code used to build Bitcoin. However, the bitcoin community and a few experts do not consider this to be an important event that can alter the fortunes of bitcoin sv. But what do the charts project? Let us find out.
The BSV/USD pair skyrocketed this week and reached the overhead resistance of $134.360. However, profit booking and selling just above this resistance resulted in the pair giving up a large part of its gains. The cryptocurrency should find some support at the current levels, failing which, the drop can extend to $82.489 and lower.
While the sharp up move from the lows shows buying at lower levels, the failure to hold onto the gains shows a lack of demand at higher levels. The pair will pick up momentum on a close (UTC time frame) above $134.360 and will weaken below $38.528. Until then, it is likely to remain range bound between these two levels.
Binance coin (BNB) has been one of the strongest performers among the major coins: it has consistently made new highs and is in a strong uptrend. Riding high on its success, cryptocurrency exchange Binance is reportedly planning to offer margin trading to its clients. The exchange is also giving away $1,000 of $ONE tokens to celebrate the launch of the forthcoming token sale. How far can the rally continue? Let us find out.
The BNB/USD pair is in a strong uptrend and has picked up momentum after breaking out of previous lifetime highs. Earlier, the resistance line had acted as a major roadblock, but the bulls are currently attempting to breakout of it. If successful, the rally can extend to $40 and above it to $46.1645899, which is a 1.618 Fibonacci extension level.
But the rally is getting vertical and the RSI on the weekly charts is threatening to enter deeply overbought territory. This shows that the up move has been overdone in the short-term, and that a minor correction or consolidation can start between $40 and $46.1645899.
Litecoin (LTC) is benefitting from the positive sentiment in the crypto space, and the forthcoming halving has added to the bullishness. A series of tweets by OKEx pointing to some kind of an announcement regarding Litecoin has also heightened interests. Can the upward move continue?
The LTC/USD pair has completed a cup and handle reversal pattern that has a minimum target objective of $158.81. If the momentum continues, the upward move can extend to $172.647. The moving averages completed a bullish crossover a couple of weeks back and the 20-week EMA is sloping up: this shows that the bulls have the upper hand.
Our bullish view will be invalidated if the cryptocurrency fails to sustain the breakout and dips below the support of $91 once again. The support levels to watch on the downside are $84.3439, $74.6054 and below it to $60.1980.
Two miners who control about 43% of the bitcoin cash (BCH) mining pool, BTC.top and BTC.com, joined hands this week and executed a 51% attack to stop an unknown miner from taking coins that were accidentally sent to “anyone can spend” addresses. In this case, the attackers did not carry out the 51% attack for their own benefit, but still some believe that it shows that the cryptocurrency is too centralized. How does its chart look?
The BCH/USD pair is currently rising inside an ascending channel. It has crossed above both the moving averages, which is a positive sign. The bulls are facing selling at the resistance line of the channel, but the positive thing is that the pair has not given up ground. If the price holds above the 50-week SMA, we should see another attempt to breakout of the channel. If successful, a rally to $620 is probable.
On the contrary, if the bulls fail to scale the resistance line of the channel, the digital currency can dip to the support line of the channel, closer to $300. A breakdown of this support will break the trend.
Dash (DASH) released its latest version 0.14 on the mainnet, which is another step leading to version 1.0, dubbed evolution. The upgrade improves the security of the network against 51% mining attacks, the first for proof-of-work networks, according to Dash Core CEO Ryan Taylor. An analysis by Cryptoslate shows that DASH has seen a growth of 58% in the active address count from 2018 to 2019, the largest growth among the major coins. This was reportedly mainly due to the surge in usage in crisis-hit Venezuela.
The DASH/USD pair has been facing resistance at $176.81 since the past week, and a breakout of this barrier will propel the pair to the next level of $229.24. We expect the bulls to again face selling at these levels. Currently, both the moving averages are on the verge of a bullish crossover and the RSI is in the positive territory. This shows that the bulls are at an advantage.
However, if the digital currency turns down from $176.81, it might enter into a consolidation. The support of the range will be at $107.36, and a break of this support will be a bearish sign.
The market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.
Facebook Plans to Launch ‘GlobalCoin’ Currency in 2020
Facebook is finalising plans to launch its own crypto-currency next year. It is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020.
The social media giant wants to start testing its crypto-currency, which has been referred to internally as GlobalCoin, by the end of this year. Facebook is expected to outline plans in more detail this summer, and has already spoken to Bank of England governor Mark Carney.
Founder Mark Zuckerberg met Mr Carney last month to discuss the opportunities and risks involved in launching a crypto-currency. Facebook has also sought advice on operational and regulatory issues from officials at the US Treasury. The firm is also in talks with money transfer firms including Western Union as it looks for cheaper and faster ways for people without a bank account to send and receive money.
How will Facebook’s crypto-currency work?
Facebook wants to create a digital currency that provides affordable and secure ways of making payments, regardless of whether users have a bank account.
The social networking site, which owns WhatsApp and Instagram, is hoping to disrupt existing networks by breaking down financial barriers, competing with banks and reducing consumer costs.
- JP Morgan creates crypto-currency
- Facebook bans all crypto-currency ads
Nicknamed Project Libra, Facebook’s plans for a digital currency network were first reported last December.
The project will see it join forces with banks and brokers that will enable people to change dollars and other international currencies into its digital coins.
A small group of co-founders are expected to launch the Swiss-based association in the coming weeks.
Ethereum Foundation Spring 2019 Update
Ethereum’s future is bright. Over the last 12 months the Ethereum community — a global collection of developers, entrepreneurs, researchers, and passionate users — has made tremendous progress. Every week, new applications built on Ethereum launch to mainnet, scalability solutions come online, and ETH 2.0 moves closer to key milestones. Ethereum remains the de-facto platform for decentralized applications, and is used every day to secure billions of dollars in digital assets.
The Ethereum Foundation’s team is thrilled to see the progress happening across the community. We have worked to support the ecosystem since Ethereum’s earliest days as a non-profit dedicated only to doing what is best for Ethereum.
As the ecosystem has matured, the Ethereum Foundation has refined its focus. “Doing what is best for Ethereum” doesn’t mean trying to do everything — it means focusing on where we can add the most value, and leaving space for others to add value in the areas that they will be the most effective.
So what is the Ethereum Foundation’s role today?
The Ethereum Foundation is a resource allocator, a voice in the ecosystem, and an advocate for Ethereum to the world.
Today, the Foundation holds approximately 0.6% of all ETH, as well as reserves held in cash. These resources are intended to decrease over time, as they are invested in critical work across the ecosystem. These are significant amounts of capital but they are not infinite. It is our responsibility to ensure that every last dollar and wei is spent effectively.
We are also working to grow the Ethereum ecosystem’s funding base. This means encouraging other organizations besides the Foundation to support high-priority projects, and supporting innovative mechanisms for funding, including Gitcoin grants and MolochDAO. Efforts like these give us better leverage from our existing resources, and help build a sustainable path for funding vital projects far into the future.
A voice in the ecosystem
We understand that many look to the Foundation as a valued voice even as we move to proactively empower others. That voice is a resource that can be used effectively to advance Ethereum. We are able to, for instance, bring attention to important but relatively unknown projects, share valuable information about Ethereum’s progress with the public, and encourage the growth of regional Ethereum communities.
Moving forward, expect the Ethereum Foundation to be a more active voice in the Ethereum community.
An advocate for Ethereum to the world
To the outside world, Ethereum can be confusing — and that’s probably an understatement. Many newcomers don’t understand our vibrant and decentralized ecosystem because they’ve never seen anything like it before.
When someone (a major company, a government or a regular person) finds their way into our world, the Ethereum Foundation is often their first stop. The first thing we tend explain is that the Ethereum ecosystem is distributed and not owned or operated by any foundation or organization. Our Foundation helps to represent Ethereum to the outside world as an effective portal that people can pass through to the ecosystem itself.
We also recognize a need to take more initiative in growing the Ethereum ecosystem, on-boarding developers and improving the developer experience. As discussed in more detail below, we intend to deploy significant resources towards these goals.
2. Our Philosophy
Ethereum is not a typical open-source project, and the Foundation is not a typical organization. Successfully fostering a vibrant decentralized Ethereum ecosystem requires a specialized approach.
Even as we deploy significant resources across the ecosystem to improve Ethereum, we must do so in a way that maintains the core spirit of decentralization. We have deliberately adopted a philosophy of subtraction, which informs everything that we do.
In plain language, following a philosophy of subtraction means resisting the natural tendency of organizations to grow and accumulate value within themselves, and ensure instead that this value is created outside the Foundation in the broader Ethereum ecosystem.
The Ethereum Foundation succeeds if Ethereum succeeds, and Ethereum succeeds with a strong decentralized community. That understanding governs how we work.
3. Highlights from Ethereum Foundation-supported teams
The last 12 months have been a crucial period for Ethereum, and we have worked extremely hard to support teams across the ecosystem. Encompassing all the progress made by teams supported by the EF in this letter is impossible, but here is a selected sample:
ETH 2.0 client teams
ETH 2.0 is a name given to a set of transformative upgrades for the Ethereum protocol. Last year, this effort moved from a research project to an engineering effort. Client teams supported by the Foundation including Nimbus, Prysm, Sigma Prime, and Substrate Shasper are among those working to turn ETH 2.0 into a reality.
Over the last few months the Nimbus, Prysm, and Sigma Prime’s Lighthouse testnets have launched. These teams and others are now stabilizing and optimizing their clients, getting ready for multi-client testnets.
Many resources are shifting into testing, fuzzing, and audits over the coming months. We engaged Runtime Verification to formally verify the deposit contract and to formally specify the Beacon Chain. This is in addition to considerable effort by the research, development, and security teams involved in ETH 2.0 toward reliability and security.
The ETH 1.x initiative, which started last year, focuses on improving Ethereum’s short term scalability and sustainability with an eye to easing the transition to ETH 2.0. Efforts we’ve funded include Alexey Akhunov’s research into stateless clients and state fees, and Andrew Ashikhmin’s research into sync protocol improvements.
Work continues on essential projects like Geth and Solidity as well, and regular updates from all supported teams are on the way.
ZK-rollup uses succinct zero-knowledge proofs to enable Ethereum to reach hundreds of transactions per second. We’ve supported Barry Whitehat and Matter Labs’ collaboration, which has led the way on research, development, and implementation.
ETHGlobal hosts Ethereum hackathons around the world, focused on on-boarding new developers into the ecosystem and facilitating project and company creation. At a recent event, ETHCapeTown, 70% of attendees were from South Africa and 40% of attendees were new to Ethereum.
Ethereum Academic and Research Collaboration
The Ethereum Foundation hosted three research workshops at Stanford and MIT, through which dozens of talented mathematicians, computer scientists, and economists were introduced to research problems originating in Ethereum. Many have continued working on these problems, leading to progress in areas essential to the future of Ethereum including Casper CBC, VDFs, Plasma constructions, succinct zero knowledge proof based systems, liveness, and safety bounds for Ethereum 2.0 among others.
Additionally, the Cryptophage collaboration between the Ethereum Foundation, Supranational, and Protocol Labs produced a solution to renowned cryptographer Ron Rivest’s LCS35 time capsule crypto-puzzle that required only two months, as opposed to the projected 35 years.
Working with prominent organizations to encourage their engagement with the Ethereum ecosystem
In our role as an advocate for Ethereum to the outside world, the Foundation has worked to encourage high profile organizations to engage with Ethereum in ways that strengthen the whole ecosystem.
Notably, we have been working closely with Microsoft Azure’s team in a long-term commitment to support the Ethereum developer experience through Visual Studio Code and the new Azure Blockchain service.
We have also connected with large entities like HTC and Opera, encouraging them to engage with the Ethereum community and support Ethereum-based applications, and with non-corporate organizations like UNICEF to help find ways to use Ethereum for social good.
There’s a lot more being done by Foundation-supported teams than just the examples listed above. Stay tuned for more updates coming from these teams in the next few weeks.
4. Allocating Resources over the next 12 months.
An ecosystem-level view for Ethereum support
Today, we’re excited to share more information about the Foundation’s priorities for the next year, and how we expect to allocate resources across the ecosystem.
As we’ve learned and iterated, we’ve made necessary changes to our processes and priorities. When the Ethereum ecosystem was much smaller, it made sense for the Foundation to prioritize several “in-house” teams to work on the most fundamental projects. As the community grew, we began a Grants program that enabled us to support more teams throughout the ecosystem.
Today, it shouldn’t matter to the Foundation whether a project is “internal” or “external”. What matters is that we’re spending resources effectively, and that Ethereum’s goals are accomplished. This is why we are moving toward an “ecosystem level view” when allocating resources by looking at the whole picture rather than at a subset of it.
Over the next year, the Ethereum Foundation plans to spend $30 million USD on key projects across the ecosystem. This budget is insulated against downward ETH price movement.
We believe that this is a critical time for Ethereum, justifying significant investments in important work across the ecosystem.
Allocating across such a large and vibrant ecosystem is a substantial optimization challenge. We are constantly re-evaluating and optimizing our decisions, and new opportunities for leverage appear every day.
To help clarify how we define our highest priorities, we describe below three primary categories of resource allocation: (i) Building the Ethereum of tomorrow, (ii) Supporting the Ethereum of today, and (iii) Developer Growth & Awareness.
i. Building the Ethereum of tomorrow
$19 million earmarked over next 12 months
Ethereum remains a highly ambitious technical project, and significant resources are required to fund the R&D that will realize the Ethereum community’s ambitions. Critical work is underway across the ecosystem on active engineering projects like ETH 2.0, and on more long-term investments like growing the academic community’s involvement in Ethereum technology.
- ETH 2.0: Client teams, Research, VDF, documentation and communication
- Layer 2: State channels & Plasma
- Continuing work on eWASM
- Smart contract languages
- Formal verification, auditing, and specification work
- Zero-knowledge R&D, including ZoKrates
- Ethereum “Phase 3 and Beyond” R&D
- Working directly with academic institutions and attracting exceptional research talent
ii. Supporting the Ethereum of today
$8 million earmarked over next 12 months.
Ethereum is used in production today to secure billions of dollars of assets and as a base layer for many hundreds of live applications. We believe that it is vital to continue supporting these efforts to ensure that “Ethereum 1.0” continues to be the world’s dominant smart-contract platform.
- Many initiatives under the banner of “ETH 1.x”
- Web3.js and Ethers.js
iii. Developer Growth & Awareness
$3 million earmarked over next 12 months
Developers, developers, developers.
Ethereum is a platform and the developers who build on it are a key part of our future. It is critical to invest in developer relations, education, and on-boarding today in order to grow the Ethereum community and to ensure our continued success. This is especially important in Asia, where significant opportunity exists for Ethereum to grow.
This figure also includes more traditional efforts to grow awareness of Ethereum, through marketing efforts at both technical audiences and at users of Ethereum-based applications.
- Developer education & on-boarding
- Supporting community event organizations focused on developers, like ETHGlobal
- Continuing to run Devcon as a yearly gathering for the Ethereum ecosystem
- Supporting regional Ethereum community organizations
- Developer experience improvements and developer tooling
- Attracting exceptional developer talent
- Encouraging browsers and other mass consumer technologies to seamlessly integrate Ethereum into their user experiences
- Continued improvements to ethereum.org
USDC Reserve Attestation Report
Circle released the latest attestation report on US dollar reserves backing USDC issued by independent accounting firm, Grant Thornton LLP. The report states that as of April 30, 2019 at 11:59 PM Pacific Time:
- USD Coin (“USDC”) tokens issued and outstanding = 293,184,174 USDC
- US Dollars held in custody accounts = $293,351,374
- As of the Report Date and Time, the issued and outstanding USDC tokens do not exceed the balance of the US Dollars held in custody accounts
You can read the full report here. Grant Thornton LLP will provide USDC attestation reports on Circle’s USDC reserves on a monthly basis.
The New Paxos Platform: Move from PAX to Dollars Instantly
PAX is a digital dollar we built so money can move fast. Now, PAX can move even faster. We’re pleased to announce instant redemptions for PAX. PAX is the only crypto asset to offer this functionality, immediacy and level of confidence with no minimums, maximums or fees associated. This development comes because of our commitment to offering the most reliable, regulated and protected digital dollar to our customers. Our latest technological advancements make it possible for our users to move with ease between USD and PAX ensuring they have access to their own assets in the form they need – whether for convenience or peace of mind.
Paxos created the Paxos Standard (PAX) stablecoin to bring together the stability of USD and the efficiency of blockchain technology. We launched PAX with a 1 day redemption window, which was groundbreaking. Then we moved to four-hour windows. Now, we’re setting precedence again by offering immediate redemptions today. (Immediate creations coming soon!) This means whenever you deposit PAX on the Paxos platform, it is immediately available as USD. For that reason, there will no longer be any distinction between your USD or PAX balance on Paxos; all will be held as one, unified USD balance on our platform, and available 24/7 to send as either USD or PAX. Transact at the speed of the internet, unlike ever before.
And we’re bringing this to you within a new platform experience that lays the foundation for the future of our company. It offers a scalable architecture that not only brings our PAX and itBit products closer together, but also makes way for us to add more assets, offerings and integrations that will change how you use digital assets well into the future. With today’s news, we’re a step closer towards building the platform that will power the future of finance.
Take a glimpse at the new Paxos and get insight into how we’re envisioning a global, frictionless economy.
Price Analysis: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Binance, Stellar, TRON
Though cryptocurrencies are not strongly correlated to any asset class, the sharp fall in U.S. stock prices due to the escalation of trade war between the U.S. and China is providing an added impetus to crypto prices. While many traders milk the volatility of the crypto markets, about 12% of the crypto traders stay invested for the long term, according to a survey by HBUS.
While the stage is being prepared for institutional investors, mass adoption of cryptocurrencies is another important factor for long term growth of the asset class. Two companies, Starbucks and Facebook, have been in the news for the past few months on rumors of their involvement with cryptocurrencies.
While Starbucks is expected to start accepting Bitcoins at its retail stores, Facebook is likely to launch its own cryptocurrency named FB Coin, which is a stablecoin. Though the actual details are sketchy, these companies have massive reach among retail customers and their arrival will boost crypto adoption among the masses.
These fundamental developments are pointing towards the growth of the asset class. However, the question remains on which cryptocurrency will be the major beneficiary. Michael Novogratz, CEO of Galaxy Digital, believes that Bitcoin will only be treated as a store of value and other networks will grab attention with their use cases.
Bitcoin (BTC) is skyrocketing. The pace of the rally has surprised us. It has scaled above the overhead resistances with ease. This shows that the bulls have continued to buy on every rise without waiting for a dip. While this is a positive sign, the pace of rise is unlikely to sustain for long. Traders can trail the stops on the remaining long positions at $7,100.
The next level to watch on the upside is $8,496.53 and above it, the move can extend to $10,000. It is difficult to predict where the rally will stall. Therefore, traders can keep trailing the stop loss to protect their paper profits. The next pullback is likely to be sharp and deep.
Both the moving averages are trending up, which shows that the bulls are firmly in the driver’s seat, but the RSI has risen deep into overbought territory. This suggests that the traders are chasing the price higher and the pair is vulnerable to a pullback. On the downside, the BTC/USD pair might find support at $6480.54 and below it at the 20-day EMA. This will indicate strength and signal the end of the bear phase.
On the other hand, if the bears sink the digital currency back below $5,900, it will dampen sentiment.
Ethereum (ETH) soared on May 11 to above $200, but the bulls could not sustain the rally. After that, the attempt by the bears to plummet the price back into the triangle failed. Currently, the bulls are again trying to sustain above the $200.
Both the moving averages are sloping up and the RSI is near the overbought zone. This shows that the bulls are in command, but we are yet to see a sustained up-move. The targets on the upside are $225 and above it $256.
However, if the ETH/USD pair picks up momentum, it can surprise to the upside and rally to $300. Our bullish view will be invalidated if the bears sink the pair back into the triangle. For now, the stop loss on the existing long positions can be kept at $160.
Though Ripple (XRP) is still in the range, it is pointing to a breakout. If the bulls succeed in pushing the price above $0.33108, it can rally to $0.37835. The digital currency is likely to pick up momentum above this level. We will wait for the price to sustain above $0.33108 before proposing a trade in it.
The levels to watch on the upside are $0.45 and above it $0.60, with a minor resistance at $0.5650. Contrary to our expectation, if the XRP/USD pair fails to break out and sustain above $0.33108, it will remain range bound between $0.27795 and $0.33108. The trend will turn negative on a breakdown below $0.27795.
Bitcoin Cash (BCH) soared above the range on May 11, which is a positive sign. We like the way the bulls held the price above the previous resistance-turned-support of $335.62. The 20-day EMA has turned up and the RSI has reached the overbought zone. This shows that the bulls are in command.
The BCH/USD pair can now rally to $424 and above it to $500. Our bullish assumption will be negated if the pair breaks down of the support at $335.62 and re-enters the range. The trend will weaken if the bears sink the price below the 20-day EMA. In such a case, the price will remain range bound between $255 and $335.62.
Litecoin (LTC) surged above $91 on May 11 and 12 but it could not close above the resistance level. The pullback from this level was shallow as the digital currency found support at $83.653. The bulls are again trying to scale above the overhead resistance at $91.
A breakout and close will complete the bullish cup and handle pattern. This has a target objective of $158.91. Traders can buy the LTC/USD pair on a breakout and close (UTC time frame) above $91. The stop loss can be kept at $70, which can be raised later. Please keep the position size about 50% of usual as the risk of a pullback is high.
Contrary to our assumption, if the pair turns down from $91 and plummets below the 20-day EMA, it can drop to $70. The pair will turn negative on a breakdown of $66.470.
EOS turned around from just above $4.4930. The bulls quickly propelled the price above the uptrend line and the 20-day EMA. There is a minor resistance at $5.50, above which a move to $6.0726 is probable.
On the contrary, if the EOS/USD pair fails to sustain above the overhead resistance at $5.50, it can remain range bound between $4.4930 and $5.50 for a few days. It will turn negative on a breakdown and close below $4.4930. We do not find a buy setup that gives us a good risk to reward ratio at current levels, hence, we do not recommend a trade in it.
Binance Coin (BNB) reversed direction from just below $18 and rallied above both moving averages and the uptrend line of the wedge. This is a bullish sign as it invalidates the breakdown of the wedge.
The bulls are attempting to push the price towards lifetime highs. A breakout and close above the lifetime highs will be a bullish sign. We might suggest a long position if the price sustains such highs.
Conversely, if the bulls fail to break out of the new highs, the BNB/USD pair might remain range bound for a few days. The trend will turn bearish on a breakdown of $17.50.
Stellar (XLM) is trying to pull back, but is facing resistance at the moving averages. If the bulls push the price above the 50-day SMA, it can move up to $0.12039489. The long-term downtrend line is located at this level. We expect the bears to offer a stiff resistance at this point.
On the other hand, if the XLM/USD pair fails to breakout of the moving averages, it can slump to $0.08641170 and below it to $0.080. Both the moving averages are flattening out and the RSI is just below the midpoint, which suggests a consolidation in the short term. As the price is still quoting below both the moving averages, we will wait for it to form a reliable buy setup before proposing a trade in it.
Cardano (ADA) reversed direction from $0.057898 on May 10 and broke out of the downtrend line on May 11. It has been facing resistance at $0.080 for the past two days. Both the moving averages are flat and the RSI is just above the midpoint. This suggests a range formation in the short term.
If the ADA/USD pair sustains above the 50-day SMA, it can move up to $0.094256. This might act as a stiff resistance but, if scaled, it will complete a reversal pattern that has a target objective of $0.161275. Traders can buy a breakout and close (UTC time frame) above $0.094256. We will propose a stop loss when the trade triggers.
Our assumption will be invalidated if the pair turns down and breaks below $0.057898. In such a case, a drop to $0.040 is probable.
Tron (TRX) remains stuck in the $0.02094452–$0.02815521 range. It has not participated in the current recovery, which is a negative sign. Both the moving averages are flat and the RSI has been hovering below 54, which suggests that the bears have a slight advantage.
As the TRX/USD pair has been range-bound for the past few months, a breakout of it will signal the start of a new uptrend. Therefore, we maintain our buy recommendation given in an earlier analysis. However, if the pair turns down and breaks below $0.02094452, it can plunge to the critical support of $0.0183.
Analytics: BTC, ETH, BCH, LTC and XMR
Bitcoin has been the main attraction in the past week, as it has scaled every stiff hurdle with ease. The rally has helped its market dominance hit levels not seen since December 2017. After a long time, the traders have focused on the positives and have disregarded the negative news. This shows that the sentiment is bullish.
A rally being led by the largest cryptocurrency is a bullish sign. Some believe that the upward move is a result of increased activity by institutional players. While we are surprised by the pace of the rally, we believe that this is not sustainable and a repeat of the previous bull market is unlikely. Bitcoin will soon enter a consolidation or a minor correction that can be used as a buying opportunity.
The recovery in cryptocurrencies has enabled projects to source funds easily. Bitfinex has received hard and soft commitments for its $1 billion initial native exchange token offering. Similarly, blockchain equity loan platform Figure, backed by Morgan Creek has sealed a $1 billion “uncommitted” financing facility via blockchain.
Will bitcoin pull the altcoins higher, or will the altcoin rally indicate that the retail crowd is jumping in and a short-term top is close by? Let us see what the charts of the top five performers of the past seven days project.
Bitcoin (BTC), with its scintillating run, is back in the limelight. One of the world’s top cryptocurrency exchanges, Binance, was hacked and 7,070 in bitcoin was stolen from its hot wallets. However, the hack did not rattle the markets as it continued its uptrend after a brief pause. When markets do not correct on negative news, it is a bullish sign.
Galaxy Digital CEO Michael Novogratz expects the lifetime highs to be scaled within the next 18 months. Financial advisory firm Canaccord Genuity also arrived at a similar conclusion based on their studies: they expect bitcoin to hit $20,000 by 2021. Tim Draper, however, is even more bullish, as he expects Bitcoin to reach $250,000 by 2023.
However, we suggest traders not to get carried away by these lofty targets. Let’s see what the charts project.
The BTC/USD pair is easily breaking out of the overhead resistances. We were expecting the recovery to pause in the zone of $6,000 to $6,480.54, but the pair easily crossed this zone. It has a minor resistance at $6,850, above which the rally can extend to $7,500 and if that level is also crossed, it can move up to $8,500.
However, the sharp rally has pushed the RSI on the weekly charts into the overbought zone for the first time since early January 2018. This shows that the rally has been persistent and strong.
Any dip will find support at $5,900 and below it at $4,900 levels. The next fall might form a higher base and be the last opportunity to buy before the cryptocurrency enters a sustained long-term uptrend.
While ether (ETH) volumes on decentralized applications (DApps) hit a new high, the number of new DApps deployed on-chain is at a low, close to 2017 levels, according to crypto analytics firm Diar. Over the next 12 months, the Ethereum Foundation plans to spend $30 million for various projects across the ecosystem. Helped with a donation of $1,000 Ether each by Joseph Lubin, Vitalik Buterin, ConsenSys and the Ethereum Foundation, the Moloch decentralized autonomous organization’s total funds have reached $1 million.
An unidentified official of the US Commodity Futures Trading Commission said that an Ether-based futures product might receive the approval of the regulator if it meets the requirements. Can these bullish developments propel the cryptocurrency higher?
After defending the breakout level of $167.20 for the past four weeks, the bulls are attempting to resume the uptrend. This is a positive sign. The breakout of the ascending triangle can push the price to $256.08, above which a move to $300 is probable.
The ETH/USD pair might face some resistance at the 50-week SMA, but we expect this level to be scaled.
Our bullish view will be negated if the bears reverse direction from the current levels and sink the pair back into the triangle. Such a move will invalidate the breakout of the bullish pattern, which is a bearish sign.
More than 50% of transactions in bitcoin cash (BCH) are being generated from a single account. These are small transactions in value but are being done on a regular basis — about three to four transactions per second. Some believe that this is being done to make the network look busier than it is, while others speculate that it is being done for a test. Nevertheless, all eyes will be on the forthcoming upgrade of the network on May 15.
The BTC/USD pair has been trading in a tight range of $255 to $335.62 for the past four weeks. The attempt by the bears to breakdown from this range failed, as the bulls purchased the dip to the 20-week EMA.
Currently, the bulls are attempting to ascend the overhead resistance zone of $335.62 to $363.3. If this zone is scaled, the pair is likely to move up to $600. Though there is a minor resistance at 50-week SMA, we expect it to be crossed. Traders can buy above $370 and keep a stop loss of $260. Please use only 30% of the usual position size for this trade: if the cryptocurrency struggles to breakout of $400, traders can quickly raise the stop loss to reduce the risk.
Our bullish view will be invalidated if the price reverses direction from the overhead resistance and plummets below the 20-week EMA.
A new version Litecoin Core 0.17.1 was released which brings in new features, bug fixes, performance improvements and more. Will the bullishness in bitcoin rub off on litecoin? Let’s find out.
The LTC/USD pair has formed a cup and handle pattern, which will complete on a breakout and close above $91. This will have a minimum target objective of $158.91, but the momentum can carry it to $172.647 levels. The traders can buy on a breakout and close (UTC time frame) above $91 and keep a stop loss of $65. The moving averages have completed a bullish crossover and the RSI is in the positive zone, which suggests that the bulls are in command.
Still, please keep the position size only 50% of normal: let’s keep our risk under control.
Our bullish assumption will be negated if the price fails to breakout and sustain above $91 and drops below $65. In such a case, a fall to $40 and lower is possible.
Cybercriminals are finding new ways to exploit the vulnerability CVE-2019-3396 in Confluence, a widely used collaboration and planning software, according to a report by security intelligence firm Trend Micro Inc. Monero (XMR) is the fifth best performer of the past seven days. Can it improve its performance over the next few days? Let us find out.
The XMR/USD pair has been consolidating for the past five weeks, and has a stiff resistance at $81. The 50-week SMA is also located just above this level. Hence, we anticipate this zone to act as a stiff hurdle for the bulls.
But if the bulls breakout of the 50-week SMA, it will signal strength and can gradually move up to $120 and above it to $150. Conversely, if the bears sink the pair below $60, it can retest the lows at $38.5.
Traders can wait for the price to breakout and close (UTC time frame) above $81 to initiate long positions. The initial stop loss can be kept at $60, which can be trailed higher as the cryptocurrency moves northwards.
The market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.
HitBTC Exchange Analytics: ATOM, DASH, MIOTA, BTC, BCH
While markets have looked bullish this week following a sharp surge May 3, traders need to watch out for a correction in the next few days. This pullback will shake out the weak hands and will differentiate between different digital currencies. While some will lose only a part of their recent gains, others will plunge towards their lows again.
The stronger ones are likely to lead the next bull market in cryptocurrencies. Therefore, traders should buy strength after the pullback ends. If our assumption is correct, the current fall should offer a great opportunity to buy for the long-term. Our view will be invalidated if cryptocurrencies give up all the gains made over the past few weeks.
A survey by financial consultancy firm DeVere Group shows that 68% of high-net-worth individuals across the globe will have invested in cryptocurrencies by the end of 2022. One of the major reasons for investing in cryptocurrency is their borderless nature, which makes the assets available across the globe.
Atom (ATOM), the native crypto asset of the Cosmos blockchain, made an impressive start as it made a place for itself among the top 15 cryptocurrencies by market capitalization within a very short span of time. Its price received a boost as it was listed on Binance, without even trying. However, while the initial response has been bullish, can the momentum continue in the best performing major cryptocurrency of the past week or is it time to take some chips off the table? Let’s take a look.
The ATOM/USD pair has a very short trading history; hence, we are using a daily time frame chart on it. The pair witnessed huge volatility on its listing day. From a high of $8.90 on April 22, it plunged to a low of $2.9277 on April 24. That was a drop of 67.10%. However, since then, the recovery has been sharp. The price has reached close to the 38.20% Fibonacci retracement of the recent fall. A rally above this resistance can push the price to $5.9139, which is the 50% retracement level.
The level between $5.9139 to $6.6186 will act as a stiff resistance. Any breakout of the 61.80% Fibonacci retracement can propel the digital currency to $8.90. However, if the price turns down from the current levels, it can drop to the next support of $3.60.
The recovery in market prices pushed the mining hashrate of Dash (DASH) to an all-time high of 3.2385 petahashes on April 19, bettering its previous record of 3.237 petahashes set in early November 2018. It has since then again improved on the record to 3.8957 petahashes on May 2.
In order to solve the issues faced by Dash merchants, Dash Retail has released a merchant transaction counter for its point-of-sale app and a conversion rates API to provide accurate conversion rates to fiat currencies.
The DASH/USD pair corrected to the breakout level of the range in the week before this past one. We like that the price has sustained above the 20-week EMA since breaking out of it. The bulls are currently attempting to resume the recovery. It will pick up momentum after it breaks out of the overhead resistance between $138.709 and the 50-week SMA. Above this zone, the pair can rally to $225.
On the other hand, if the digital currency reverses direction and plunges below $103.261, it will re-enter the range. This will weaken it and can result in a fall to the yearly low.
Car manufacturer Jaguar Land Rover will reward drivers by giving them MIOTA tokens for data reporting. These tokens can thereafter be redeemed for various products. The Austin Transportation department in the city of Austin, Texas has collaborated with Iota Foundation to work towards a more interoperable transportation ecosystem.
The MIOTA/USD pair has been range bound between $0.244553 and $0.385033 since the end of December last year. The bears attempted a breakdown of this support in the week before but failed. Buyers quickly pushed the price back in the range. However, the pair is facing resistance at the 20-week EMA. If the price can scale above this resistance, it will challenge the top of the range at $0.385033.
A breakout of the range is likely to start a new uptrend that can carry the price to the psychological resistance of $0.50. On the other hand, a breakdown below $0.244553 will sink it to lows. The longer the digital currency remains in the range, the stronger its eventual breakout will be.
Bitcoin (BTC) prices have risen sharply over the past seven days. Fundstrat analyst Robert Sluymer believes that this is the start of a new uptrend and investors should buy more on any pullback. He expects the price to zoom past $6,000 in the second half of the year.
It is interesting to note that bitcoin’s dominance has increased from about 50% to 55.5% in about a month. This shows that traders are currently favoring bitcoin over other altcoins. More and more people are now aware of Bitcoin and about 11% of the American population has already invested in it, according to a survey by Spencer Bogart of Blockchain Capital.
Grayscale Investments has started a “Drop Gold” campaign where it portrays BTC as an alternative to gold investments. With all these bullish noises, should one buy now or wait?
The BTC/USD pair has reached the stiff overhead resistance of $5,900. This is a critical level because the pair had repeatedly taken support close to it since February to early November, before breaking below it. Now on the way up, we expect a lot of supply to hit around these levels.
But the price has risen above both moving averages, which is a positive sign. If the bulls can continue the momentum and ascend $5,900, the digital currency can rally to $6,480.54. We do not expect the zone between $6,000 to $6,480.54 to be crossed in a hurry. A minor correction or a consolidation around these levels is likely.
On the downside, support is at $4,914.11. If this level breaks, it will dampen sentiment and can drag the price to the next support at $4,255. Traders who have missed out buying in this recovery can wait for dips to buy, instead of chasing the rally.
The next hard fork on bitcoin cash (BCH) is slated for May 15. Schnorr signatures, a scaling and privacy code change, will go live on the coin’s mainnet to improve the cryptocurrency’s privacy and scalability.
Since the surge in early April, the BCH/USD pair has largely been consolidating between $255 and $335.62. The attempt by the bears to plummet below this range in the last week found buyers at the 20-week EMA. Currently, the bulls are attempting to push the price towards the top of the range.
If the pair breaks out of the range and the minor resistance at $363.30, it can rally to the 50-week SMA and above it to $600. The digital currency has a history of vertical rallies; hence, it is likely to surprise to the upside.
Our bullish view will be invalidated if the digital currency plunges below the support of the 20-week EMA. In such a case, a fall to $166.25 is probable.
Market data provided by HitBTC exchange. Charts for analysis provided by TradingView.
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