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Cryptocurrencies

1000 Times More Powerful

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When we think about what makes money money, aside from the perception of value, we also need to have liquidity.

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Meaning, that it’s not enough for people to believe something has value, it also needs to be easily exchangeable for goods and services in order to be considered a viable store of wealth.

In Japan, the government has already declared that bitcoin is a valid form of money and we know that hundreds of thousands of stores there are already accepting or are in the process of making bitcoin acceptable.

Recently it was announced that Australia will be installing 3000 brand new bitcoin ATM machines. The machines will allow people to exchange both ways so people can buy and sell bitcoin instantly for Australian Dollars.

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This type of activity exponentially increases the liquidity of Bitcoin in a strategic region that is key in the war on government money.

Thanks a lot to @etorowiz for sending this to me. Keep up the excellent trading Neville!

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of September 4th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Just when we thought the dust was safely under the North Korean rug a huge blast sent it flying all over the place once again.

Kim Jong Un claims that the 6.3 magnitude blast at their testing grounds on Sunday was indeed a Hydrogen Bomb and that they have the technology to attach it to a long range missile, the kind that they flew over northern Japan last week.

For those of us that are less up on our intricate knowledge of nuclear fission, a Hydrogen Bomb can be up to 1000 times more powerful than an Atomic bomb. Experts are currently debating whether Kim is telling the truth about both outrageous claims but what is clear is that the international community is now extremely nervous.

Markets in Asia are down significantly this morning as are the European stocks.

Though timing for such an event is never good, this blast comes at a particularly bad time both for Xi Jinping who is hosting the BRICs summit and for Donald Trump who is fighting a number of ciritcal battles at home.

Those Jobs Numbers

The NFP Jobs report that came out on Friday was really poor. Not only did the numbers fail to meet analyst expectations, but the numbers for July were revised down as well.

Stocks on Wall Street were seemingly unphased by the bad news and even managed to close the day on green. At this point, the only thing the US equity markets can really think about is the upcoming tax reforms. If there is any room for any other thoughts we could see it on the opening today due to the Geopolitical mess mentioned above.

The US Dollar, on the other hand, is a bit more vulnerable and did spike down following the announcement but managed a remarkable recovery by the end of the day.

We can see the action quite well against the Japanese Yen…

Of course, the North Korean nuclear test on Sunday overshadowed the NFP and the Yen started out this week in a much stronger position.

Crypto Pullback

Many crypto currencies reached new all time highs on Friday before a fierce pullback that we’re still in at the moment.

Bitcoin briefly breached the $5000 per coin mark just before the pullback began.

Remember, the overall crypto industry gained 84% during the month of August. At this point, we’re about 11% from the peak. So if the pullback stops at this moment it would be considered quite small in the grand scheme of things.

Momentum traders should keep a close eye on how things progress today.

What else?

Today is Labor Day in the US and Canada. Make sure to check the Market Hours page for opening times on the assets you are trading.

The Reserve Bank of Australia will be setting their interest rate early tomorrow morning, which is always fun for Forex traders.

Investors are already getting excited about the ECB meeting this Thursday, which will be followed by a press conference from Mario Draghi. Euro is on track for one of it’s best years ever against the US Dollar and it’s making European Bankers nervous. Draghi will no doubt be willing to do “whatever it takes” but what will it take? We’ll find out soon enough.

Wishing you an amazing week ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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1 Comment

1 Comment

  1. Chris G

    September 4, 2017 at 8:24 pm

    Thanks mati!

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

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Cryptocurrencies

Trade Recommendation: Ethereum Classic

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The market moves between the 16.00 and 17.50 levels. DMI confirms range market conditions. This trading idea is based on a breakout from this horizontal channel. If the price breaks the 17.50 resistance level, it will likely be a signal confirming further upward movement. We should be ready to join this movement. Pending orders for buy can be placed at 17.65 level with stop orders below the support at the 15.70 level. The main profit target is 21.00 but the part of trade volume can be left for the long run. If you don’t use leverage, trading volume for this trade is up to 10% of your deposit.

Market: ETCUSD
Buy: 17.65
Stop: 15.70
Profit Targets: 21.00

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The trading signal is based on Poloniex chart.
Disclaimer: The analyst does not have investments in Ethereum Classic.

Featured image courtesy of Shutterstock. 

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Cryptocurrencies

Robbing from the Poor to Feed the Rich

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As we see the astonishing rate of bitcoin adoption accelerate throughout the globe, one of the key things to watch are region specific updates.

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Japan is already well on their way to full integration but several small countries have already outlawed it outright. In my opinion, the key region to watch right now is India.

It’s been one year since Prime Minister Modi took the drastic step to basically outlaw cash and the citizens are still struggling to adjust. So far they’re mainly relying on credit cards but some are still using old bank notes on the black market.

So this headline is particularly interesting at the moment.

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Of course, the government doesn’t necessarily have to respond to the court’s wishes with any real action but it’s comforting to know that they’re pushing it forward.

The price of bitcoin climbed to a new all time high of $7,965 following this announcement before pulling back slightly this morning.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 17th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

All stocks are green this morning. Wall Street gave an appropriate salute to Washington DC and the stocks went higher.

Republicans were easily able to get their new tax bill through the House of Representatives and now face a tough battle when the bill reaches the Senate. House Republicans have now proved that they’re willing to sell their souls for a win. This bill, on the face of it will have the effect of depriving 4 million of the poorest Americans of their healthcare in order to drastically reduce taxes on the wealthy.

This is the definition of robbing from the poor to feed the rich.

Of course, many souls on Wall Street are already involved in a long-term lease with the Devil. We can see here that the S&P500 was able to erase five days of losses in about five hours.

Ripple + American Express

Ripple caused waves yesterday as two major financial firms announced that they will now start using their service. American Express and Santandar Bank will use the Ripple blockchain to open a blockchain payments wormhole between the US and the UK.

The price of Ripple’s XRP tokens spiked on the announcement. However, the excitement wore off pretty quickly when it became clear that the new payments channel will likely not use XRP in the initial stages.

Here we can see the initial spike from a stable rate of 20.5 cents per token to as high as 27.1 cents per token in just under an hour.

Still, the fact that these two very large financial institutions are partnering with this particular startup is astonishing and should be seen as a positive step both for the Ripple network and the entire crypto community.

Astonishing growth continued…

Over the past 24 hours, including a slight pullback, the value of all crypto-assets has risen by an additional $5 Billion. Over the past month, the total market cap figure has gone from $173 Billion to $225 Billion this morning for a total industry growth of 30%.

The weekends have proven to be particularly volatile in the crypto-markets so I’d like to wish you an astounding weekend ahead.

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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