Bitcoin and Ethereum closed Wednesday with gains, but both cryptocurrencies weren’t able to break above the 20-day moving average; however, pairs opened the Thursday above that level and BTC and ETH are posting gains on the day.
Coinbase to purchase Keystone Capital
Leading cryptocurrency exchange Coinbase wants to be a regulated broker-dealer with the ability to offer crypto trading in the United States. Now, they plan to buy Keystone Capital.
The San Francisco based company announced its intentions to acquire SEC-regulated broker and dealer Keystone to enhance its plans to be “be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission,” said Coinbase president Asiff Hirji in a press release.
Hirji believes that in the future, companies would be able to work with regulators to tokenize existing securities and to converting it into crypto-based assets.
SEC director disappointed by self-reporting into the crypto industry
One of the points that makes SEC and NFA successful is the self-reporting that securities and futures exchange companies regularly do. Well, that is not happening in the ICO and crypto markets according to Brett Redfearn, SEC Director of division of trading and markets.
“We’re underwhelmed by the enthusiasm for coming within the regulatory structure right now,” said Redfearn, “There are a number of exchanges that are trading ICOs that I would think that we would see more registrations.”
Remember that the SEC stated that all ICOs are securities which need to be registered with the agency.
The battle between fiats vs. cryptos according to the IMF
The International Monetary Fund believes that “crypto assets may one day reduce demand for central bank money,” according to its latest report published by Dong He.
According to the IMF, central banks should maintain trust in fiat currencies and, at the same time, play the game in the digital sphere. However, “these assets may one day serve as an alternative means of payment and, possibly, units of account, which would reduce the demand for fiat currencies or central bank money.”
He said that central banks “can remain relevant by providing more stable units of account than crypto assets and by making central bank money attractive as a medium of exchange in the digital economy.”
Bitcoin is trading above the 20-day moving average; finally
Bitcoin is trading positive for the third day as the pair closed Wednesday with gains above the dynamic resistance of 7,630, but it remained below the 20-day moving average level of 7,715. However, BTC/USD opened Thursday with gains and it is trading 0.80% up at 7,716.
The crypto king opened Thursday above the mentioned 20-day moving average and the dynamic resistance. It is now trading positively.
To the upside, bitcoin needs to consolidate the close above the dynamic line at 7,600 and above the 20-day moving average at 7,680. The 7,800 will be the next resistance; then, the 7,950 area and the 50-day moving average at 8,460. Then, the pair would face the dynamic resistance coming from January 2018.
To the downside, if the pair manages to break below the 7,200, it will open the doors for more weakness with the 7,000 area as the primary support. Below that, 6,500 and the crucial 6,010.
Ethereum performed a red hammer, but it opened above 20-day MA too
Ethereum, on the other hand, closed Wednesday at 606.00, slightly negative and performing a hammer. However, it opened above the 20-day MA and it is trading 1.21% positive at 613.50 on Thursday.
The pair made a clean opening above the mentioned moving average. The chart suggests that more bullishness is expected. Technical indicators are pointing to the upside, and despite some overbought conditions indicate caution, market is waiting for a new test of the 630.00 level.
Above the 630.00, it will find the immediate resistance at the 50-day moving average at 657.00; then the 200-day MA at 713.00.
To the downside, if the pair gets back below the 580.00 level, it will open the doors to the 560.00. Then, 500.00 will be the next significant area, and nothing else is in between there and the 400.00 area.