Blockchain, cryptocurrencies, and bitcoin are the future as AMD earnings report showed Thursday. According to AMD latest earning call, approximately 10% of the company revenue in the Q1 2018 came from Blockchain and mining.
Gamin and blockchain demand drove demand for Radeon products in AMD. According to CFO Davinder Kumar, “blockchain was approximately 10%” of the $1.65 billion of AMD revenue in the first quarter of 2018.
On the other hand, 17 million bitcoin was mined Thursday morning, the first time the cryptocurrency miners reached the million-coin mark since 2016. A significant number as the average daily mining of Bitcoins is just 1,800 coins.
In the same line, CBOE reported that bitcoin volume rose to record highs on Wednesday. CBOE Executive Kevin Davitt said that Wednesday “was the highest daily volume for bitcoin futures since their introduction here at CBOE.”
According to Davitt, investors traded a total of 19,000 bitcoin futures Wednesday.
Coincidentally, the spike in volume happened after news from Goldman Sachs reported their first ever crypto executive hiring. Also, a Thomson Reuters report found that one in five financial institutions are considering cryptocurrency trading in 2018.
Finally, Pfeffer Capital’s partner John Pfeffer called bitcoin as the first real asset that could replace gold as the cryptocurrency is better “on every front” than the metal. According to Pfeffer, bitcoin would be a useful tool for countries with problematic currencies.
BIT/USD bounces at 8,650 and recovers the 9,000 level
After rejecting hard the 9,800 area on Wednesday, The bitcoin price found support at 8,650 against the US Dollar as the pair seems to be building up forces to attach the 10,000 level again.
The 20-day MA cross above the 50-day MA finally happened on Thursday, and now the BIT/USD is trading at 9,228, 0.49% negative on the day.
Bitcoin climbed 40% since April 10; however, BIT/USD was rejected by the 200-day moving average level twice this week at 9,800. The unit was trading in consolidation mode around 8,880, but now it is showing signals that the bullish movement can be resumed soon.
If the crypto manages to break above the mentioned 200-day MA at 9,800, the so-called 20,000 level will be tested. Then traders will face the dynamic resistance at 11,200, and they will have a significant battle around 11,800, highs of the last two months.
To the downside, bears have to wait for another failing at the 9,800 area to see the crypto falling below 8,600. Then, the BIT/USD will find supports at 7,800 and April’s lows at 6.600.
Ethereum on a consolidation mode
Ethereum is performing similarly to Bitcoin as both 20 and 50 days moving average made a bullish cross Thursday, and the ETH/USD is now heading to previous highs.
The Cryptocurrency recovered 7% on Thursday after declining around 12% the previous day from $707.80. A critical resistance that rejected the Ethereum unit several times this week. ETH/USD is now trading at 656.55, 0.70% negative on the day.
To the upside, bulls should break the 710 area before attempting to reach the 870 level. Then, the $1,000 level is the most significant price.
To the downside, if the unit isn’t able to break above the 710.00 level, bulls will see the next support at 640.00, 200-day MA. Then 565.00 and the 500.00 area.