And Bitcoin Close Below 8,400; Commerce Doesn’t Like Cryptos


by | 17th May 2018 | 0 comments

US regulators James McDonald from the CFTC, Robert Cohen from the SEC, and associate deputy attorney general Sujit Raman said in a Consensus’ panel that the control agencies don’t want to ban innovation but to make a safer space.

Cohen affirmed that “the commission encourages ways to raise capital, we don’t regulate the technology – we regulate the financial industry and the markets.” On the other hand, Macdonald commented that the regulators are “doing it in a way that doesn’t hinder innovation and doesn’t interfere with other regulatory priorities.”

Let’s see what happen, then, with Ethereum and other cryptos and how will be the digital currencies considered by the regulators.

On the other hand, ForexLive Analyst Adam Button pointed out an interesting point after the movements of Coinbase to embrace Wall Street companies. Button wrote that “the new financial paradigm is starting to look a lot like the old one.”

Button has stated before that there are three types of Bitcoin buyers, the true believers, the criminals, and the speculators. “The final two will be there as long as crypto is useful to them but the first category is the people who will be there first and who will Hold the longest. They’re the people who saw a decentralized economy in crypto, who hated the friction and costs in the financial system, who were trying to change the world with something better.”

But something is changing in Button’s words. The latest Coinbase move is more in the line of speculators than the true believers. “The biggest change is an embrace of high-frequency trading. It’s building out a low-latency platform and is going to allow co-location of their servers.”

PayPal doesn’t see much interest in cryptocurrencies

PayPal platform was one of the first companies to let merchants accept cryptocurrencies. However, according to company’s CFO John Rainer companies were restrained to use digital currencies to their business due to volatility.

Volatility in the crypto market is an issue in the stability of businesses. As Rainer stated, “if you’re a merchant and you have, let’s say, a 10 percent margin on a product that you sell and you accept bitcoin, for example, and the very next day it moves 15 percent, you’re now underwater on that transaction.”

In this framework, merchants moved to a more stable currency.

Bitcoin falls to near 1-month low

The king of cryptocurrencies fell for the third day on Wednesday as the BTC/USD broke below the Dynamic short-term support at 8,400 and it reached its lowest level since April 19 at 8,100. Bitcoin closed Wednesday at 8,344.

On Thursday, BTC/USD is trading slightly positive at 8,380. The pair tested back the now dynamic resistance, but it was unable to break above that. Then it is now close to opening prices.

The pair is just above the 50-day moving average. If the cross breaks below the 8,290.00, it will face support at Wednesday’s low at 8,100 and then 7,800 area.

To the upside, the pair needs to clear up the 8,820 level before confirming a recovery. Then BTC/USD will test the 9,000 area and the 9,400 level.

ETH/USD supported by the 200-day MA at 682.00

ETH/USD Daily Chart - 17-05-18

The second biggest cryptocurrency bounced again at the 200-day moving average level around 682.00, and it closed positive. It even performed a green hammer.

Ethereum is currently trading positive above the 710.00       0.85% up on Thursday. The pair seems to be ready to test 740.00 highs.

In any case, bulls have to push the pair above the 747.00 area before confirming the recovery. Above, 785.00 and 830.00 are the resistances.

To the downside, if the pair breaks below the 680.00 level, it will find supports at 640, May 12 low, the 600.00, and the 557.00 critical area.


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