Connect with us

Bitcoin

Asian Market Update: Bad Day for Coins – Both Bitcoin and Ethereum Are Down

Published

on

The Big Question: Has Bitcoin Reached a Temporary Peak?

Investors might be losing confidence over a recent rally that saw a few record highs in Bitcoin price.

// -- Discuss and ask questions in our community on Workplace.

After trading above $4,300 on Thursday, the price for Bitcoin fell sharply, and is currently trading below $3,700, well below the $4,000 mark.

Some traders are reportedly losing confidence in the recent rally and believe that a correction is in order after bitcoin prices fell under the $4,000 mark several times since it first surpassed it. Others believe bitcoin will consolidate around $4,000.

Meanwhile, Ethereum also took a steep fall on Tuesday. After having gained sharply the day before, Ethereum quickly went into a dive, trading as low as 295 at one point. As of time of this writing, Ethereum was trading just above the 300 level, where it appears to have found some support.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Main Market Movers – Mid-day Asian Market Update

Indexes Value at Midday Daily Change
Japan-Nikkei Stock Average 225 19,406.61 0.07%
China-Shanghai Composite Index 3,289.75 0.09%
Hong Kong-Hang Seng Index 27,437.92 1.04%
Australia-ASX All Ordinaries 5,801.70 0.83%
India-Mumbai Sensex 31,258.85 -0.84%

Major Asian indexes saw minor gains on Tuesday, led by Hong Kong’s Hang Seng, which saw a 1.04 percent increase.

In Japan, the Nikkei 225 reversed a loss on Monday as it edged up 0.07 percent to 19,406.61.

In China, the Shanghai Composite Index was also slightly up, having gained 0.09 percent to 3,289.75.

In Australia, the benchmark ASX All Ordinaries was up 0.83 percent to 5,801.70.

India’s Mumbai Sensex was down 0.84 percent.

With little broad economic data expected this month, investors are playing close attention to developments in the Korea Peninsula and an upcoming meeting of central bankers in Jackson Hole, Wyoming.

Tensions are high in the Korea Peninsula as US and South Korea militaries continue on a drill in the region. Though the number of US troops participating in the drill is down from previous drills, the drill, coming at a sensitive time, could further escalate the tension. The rogue North Korean government is showing no sign of backing down, calling the drill “reckless” and threatened nuclear war again.

In the short term, though, the gathering of global central bankers could be the main force in moving markets. The focus will be on a scheduled speech by US Fed Chair Janet Yellen in Jackson Hole, as the US is still under a tepid inflation cloud.

US President Donald Trump’s speech on Afghanistan, in which he raised the possibility of increased US military presence in Afghanistan without giving any details, did not appear to bother Asian markets much on Tuesday.

Currencies

The Japanese yen lost 0.25 percent against the US dollar. The USD/JPY exchange was at 1.09.2500 as of press time at 11:50 am.

The Chinese yuan strengthened 0.12 percent against the greenback, trading at 6.6577 per US dollar.

The Australian dollar gained 0.03 percent against the US dollar. The AUD/USD was trading at 0.7941.

Commodities

WTI Oil was up 0.36 percent to $47.54

Brent Crude gained 0.33 percent to $51.83 per barrel

Gold was down 0.18 percent to $1,294.40 an ounce

Business News across Asia

In China, the market is still talking about a restructuring plan from China Unicom, the second-largest telecom carrier in the country. The State-owned company announced a $11.7 billion ownership reform plan, under which private companies such as Alibaba Group and Tencent acquired a total of 35.19 percent. Stocks of China Unicom in Shanghai jumped more than 10 percent immediately after market open, while shares in Hong Kong dipped 1.6 percent.

Take away: The China Unicom move could mean more gigantic State-owned firms could pursue similar ownership shake-up in the coming months.

In Japan, the Bank of Japan is expanding its stock purchase as regional tensions and stagnating domestic economic growth plagued the Japanese stock market. The BOJ bought 3.58 trillion yen of stocks so far in 2017, while foreign investors only purchased 301.6 billion yen, per Nikkei Asian Review.

Take Away: The BOJ has 2 trillion yen more in buying power but negative side effects might surge.

In India: A nation-wide strike at public banks is taking place after unions called for the strike to protect against a government proposal to privatize public sector banks.

Take Away: Though operations at public banks remain open on Tuesday, services might get affected.

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.



Feedback or Requests?

Analysis

Bitcoin’s Record-Breaking Rally Continues as Prices Cross $8,100

Published

on

Bitcoin surged to new highs on Sunday, as the world’s largest crypto by market cap continued to generate bids following the cancellation of Segwit2x.

// -- Discuss and ask questions in our community on Workplace.

BTC/USD Price Levels

The value of a single bitcoin reached a daily high of $8,110.59, its best level on record. At press time, BTC/USD was valued at around $8,002 for a gain of 4%.

With the gain, bitcoin’s market cap now exceeds $133 billion. That’s roughly $100 billion greater than Ethereum, the market’s second most valuable cryptocurrency.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Bitcoin has added more than $1,100 over the past five sessions. It was down around $5,600 just one week ago.

Bitcoin Cash (BCH), a digital currency alternative that broke away from the original blockchain Aug. 1, was down 5.1% at $1,185. BTC and BCH locked horns earlier this month after the Segwit2x hard fork was abandoned.

$10,000 and Beyond?

Institutional clearing platform LedgerX has initiated its first long-term bitcoin futures option, which is set to expire Dec. 28, 2018. In setting up the option, LedgerX is assuming a price of $10,000 at the time of expiration. That’s a 25% premium on current levels.

Investors who buy the option are essentially saying they believe prices will exceed $10,000 by the time of expiration.

Bitcoin is being helped by growing institutional demand for the digital currency, as hedge funds, day traders and other mainstream investment outfits look to access this burgeoning asset class. CBOE and CME Group have each announced plans to integrate bitcoin into more conventional investment vehicles in the coming months.

The rush of institutional money into bitcoin is a sure sign that the digital asset class is becoming too big to ignore. The value of all cryptocurrencies in circulation has already exceeded $230 billion, with more than a dozen coins valued at $1 billion or more. Nine others have a market cap of $500 million or greater.

Coinbase Responds

The rise of institutional capital has also compelled Coinbase to introduce a custodial service targeted at account holders with more than $10 million in assets. This service targets hedge funds and other institutions that have remained largely on the sidelines of the crypto revolution.

In a recent blog post, Coinbase CEO Brian Armstrong announced that the new service will launch sometime next year.

“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely,” Armstrong wrote.

In addition to maintaining the minimum $10 million asset requirement, institutions must pay a $100,000 setup fee to gain access tot he Custodial program. In response, institutional investors will receive assurance that their assets are secure.

The Coinbase Custody website lists broad support for bitcoin, Ethereum (ETH) and Litecoin (LTC), as well as ERC20 tokens. The ERC20 protocol has emerged as the favorite for startups launching initial coin offerings (ICOs), a controversial crowdfunding model that has already overtaken early stage venture capital.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

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.



Feedback or Requests?

Continue Reading

Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

Published

on

Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

// -- Discuss and ask questions in our community on Workplace.

BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

(more…)

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.



Feedback or Requests?

Continue Reading

Analysis

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

Published

on

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.

// -- Discuss and ask questions in our community on Workplace.

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.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

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.

(more…)

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.



Feedback or Requests?

Continue Reading

Trending