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Cryptocurrencies

Stretch Your Limits

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Seeing Bitcoin and Ethereum both in double digit gains this morning is certainly a welcome sight. Let’s hope this continues.

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The Bitcoin scalability issue is currently coming to a head. The website known as bitcoin.org has recently published this statement on their site.

Without going into too much detail, they’ve basically said to stop all Bitcoin transactions from August 1st until the confusion clears up but did not specify when that might occur.

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Of course, the most alarming statement…

So yeah. This is real. This is happening to our beloved original digital form of money. We sincerely hope the changes will be for the better.

More details will be published in coming market updates. For now, let’s take a look at some other things that are moving. What I will say is to please be prepared for extra volatility within the crypto markets.

Of course, we’re already speaking about the most volatile asset class since the beginning of time. It’s quite possible that in the coming days, even these limits will be stretched.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs below are valid as of July 18th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Shock and awe gripped Washington DC yesterday when a vote to repeal Obamacare was squashed in the Senate.

With the Republicans controlling three out of three branches of the US government, getting rid of one of the most opposed policies from the previous president should have been a walk in the park.

Good thing the stock markets were closed when the vote was finalized. Wall Street was not damaged in the least. Perhaps the news cycle will move on by the time they open today.

Other markets were certainly affected. Asian markets appear to be down so far this morning.

Most notably though, is the US Dollar, which took a massive hit. The Inflation figures that came out on Friday had sent it to the lowest point since before the US elections (yellow circle). Last night’s bad news has sent the US Dollar back to the levels it was trading last August.

Carney’s Novel Opinion

At 2:30 PM London time Mark Carney will be unveiling the new £10 note, featuring Jane Austen. Apparently, they can’t put JK Rowling on any money just yet, so they decided to go with one of her favorite authors.

This event will be a welcome intermission for the troubled central banker. Politics and Policy have put the Canadian born Governor of the Bank of England at wit’s end.

His recent turnaround in attitude towards lifting rates has been pushing the Pound higher lately. At the time of this writing, the GBPUSD is giving the 1.3100 level a serious test.

Could the late Jane Austin spark further demand and cause investors to start speaking about a Sterling recovery?

Something Happening

The Australian Dollar is stretching its limits today as speculation builds on the Reserve Bank of Australia.

RBA Governor Philip Lowe opted to play it safe during their last meeting and did not raise the interest rates. However, the minutes of that meeting which were published last night indicated that they are indeed happy with the way the economy is going.

This optimism directly reflects the attitude of the European Central Bank and the Bank of Canada, who just raised their interest rates last week.

The thought that the Australian Dollar might soon be offering a higher rate on deposits has many traders on the edge of ecstasy. This is already a very lucrative carry trade opportunity. The thought that the value of the currency can go higher and that the rollover payments could increase has caused a virtual explosion in the price.

Put all that against a weaker greenback and we can see some real satisfaction on this graph of the AUDUSD.

Have an awesome day!!

This content is provided for information and educational purposes only and should not be considered to be an 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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Bitcoin

We Have to Talk About Bitcoin Again

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It hasn’t been a day since our last bitcoin article, but the world’s leading cryptocurrency has soared to fresh all-time highs yet again. This time, prices approached $6,200 for the first time ever.

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Bitcoin’s Bull Market

BTC/USD touched a session high of $6,180.00, bringing its total market cap to $103 billion. Prices were last seen hovering around $6,100, according to Bitstamp.

The rally on Saturday came less than 24 hours after the bulls tested the waters near $6,000. Analysts are almost certain that prices can still go higher, making a compelling case for investors who are still on the sidelines of the crypto rally. FundStrat Global Advisor’s Tom Lee believes prices could top $25,000 over the next five years. In fact, he says this is a conservative estimate.

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Bitcoin’s epic run has dwarfed Wall Street’s post-election rally, and has defied repeated warnings from big banks and policymakers.

Bitcoin Gold’s Private Fork

Coinbase made a startling revelation Friday in its FAQ section, where it claimed that Bitcoin Gold (BTG) has already privately forked. The private fork occurred “at a point known only to the Bitcoin Gold development team.” The newly minted digital currency will be made publicly available when the Bitcoin blockchain reaches block no. 491,407. That’s estimated to occur Wednesday.

Bitcoin Gold isn’t your typical fork in the traditional sense of the term. The Wednesday fork date is when the first Genesis block will be mined. The Bitcoin network will have no part in this process whatsoever.

Market participants are still skeptical whether BTG is legitimate. The code has not been made available, and its developers have already mined tens of thousands of blocks.

BTG’s reluctance to release its code publicly is a “major security risk,” according to Coinbase. As such, the U.S.-based exchange will not support the new coin. The broker remains committed to adding support for Segwit2x hard fork in November.

“After the fork, we will enable access when we have determined each blockchain is secure and stable,” Coinbase Dan Romero said in a blog post earlier this month. We expect this to happen within a few days after the fork, but it may take longer if additional risks emerge.

Featured image courtesy of Shutterstock. 

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Cryptocurrencies

Trade Recommendation: Qtum

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The price of Qtum has bounced from the support zone formed by the 0.035000 support level and Senkou B line of the Ichimoku indicator. The DMI confirms trend market conditions and allows opening long trades. We have a trading opportunity. Pending orders for buy should be placed at 0.037800 level with stop orders at 0.034000 level. The main profit target is 0.050000 level. The part of trade volume can be left for the long run. If you don’t use leverage, the recommended trading volume for this trade is up to 5% from your deposit.

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Market: QTUMETH
Buy: 0.037800
Stop: 0.034000
Profit Targets: 0.050000

The trading signal is based on Bittrex chart.   

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Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Outshines Altcoins Again

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The most valuable coin had another encouraging week, as it emerged from a brief but violent correction, just to reach new highs towards the end of the week, draining capital from altcoins. The total value of the market is stagnating near the all-time high, but BTC crossed the $100 billion mark as it surged past the $6000 price level, controlling 58% of the market.

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With the long-term MACD clearly being overbought, and as the long-term target has been hit, investors should now be looking for exit points, even as the short-term uptrend is intact. The range projection target of the recent correction is found at $7000, but correction risks are already high, and only small positions should be kept in the current setup.

BTC/USD, Daily Chart Analysis

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Most of the major altcoins are trading in narrow ranges this weekend after a slightly bearish week, as the optimism surrounding Ethereum’s major update faded and the second largest coin re-entered its previous range.

Litecoin, Dash, and Monero are still looking encouraging despite the lengthy correction, while the recently, while the relatively weak Ethereum Classic IOTA continue to show worrying signs. As the Bitcoin long trade is getting stretched,  let’s see the how the daily charts of the altcoins are shaping up.

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