Bitcoin Falls to 6-week Lows at 7,400; Crypto Industry Keeps the Momentum

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by | 24th May 2018 | 0 comments

News across the crypto industry show that the cryptosphere is growing healthy. Circle will allow users to invest in cryptos with one dollar, the CFTC published guidance for cryptocurrencies derivates, and Coinbase purchased Paradex. However, Bitcoin fell to 6-week lows, and Ethereum tested the 560.00.

Circle launches “Buy the Market,” with only a $1 minimum investment

Cryptocurrency startup Circle announced a new product called “Buy the Market” where investors are allowed to start trading with a $1 of mínimum investment requirement.

The tool is called to focus on new cryptocurrency traders and also offers crypto options and the ability to buy Bitcoin, Bitcoin Cash, Litecoin, Zcash, Ethereum, Ethereum Classic, and Monero with a single transaction.

Investors will not be allowed to spend more than $10,000 on cryptocurrencies per week, but they can start using “Buy the Market” as soon as Today.

CFTC published cryptocurrency derivates guidance

The US regulator Commodity Futures Trading Commission (CFTC), published a new guidance for exchanges, brokers, and clearinghouses planning to list cryptocurrencies derivates.

The Market Oversight division and Clearing Risk subdivision aimed to provide “regulatory clarity” to the market and to provide guidance on risk management, corporate governance, and market surveillance.

“The guidance is designed to help ensure that market participants follow appropriate governance processes with respect to the launch of these products,” DCR Director Brian Bussey said.

Coinbase buys trading platform Paradex

Crypto exchange Coinbase bought trading platform Paradex in an effort to increase its international services. Paradox allows customers to trade cryptos and virtual assets directly with other users.

Paradex doesn’t maintain custody of the tokens on behalf of its users but uses digital wallets to trade them. The purchases will expand the cryptocurrencies that Coinbase traditionally offers.

Initial plans for Coinbase is to offer Paradex to users outside the United States, but the company said that they would eventually provide access to its US customers. Compliance is the reason.

Bitcoin down to trade at 6-week lows

BTC/USD closed Wednesday down for the third day in a row after losing around 6% yesterday. It traded as low as 7,430, its lowest level since April 12. On Thursday, the crypto king is attempting to bounce, and it’s pricing 1.15% positive at 7,590.

Bitcoin is moving 13% down on the week, performing its third negative week in a row too. Since the May 5 peak, Bitcoin has lost 25%.

Technically, the 20-day moving average at 8,591 is distinctly negative with the line heading to the 50-day MA at 8,441. It seems a matter of time for a cross. The 200-day moving average is now clearly neutral at 10,315. Indicators are suggesting the downside should continue.

The pair is now testing a dynamic support coming from September 2017 and the first week of April 2018 at 7,300. If BTC/USD breaks below that level, next supports come at 7,000 and the crucial 6,600.

Expectations for a recovery are limited as the pair remains now below the 8,000 and 8,600 areas. However, if the unit clears up those levels, next resistances are at 8,800, 9,000, and 9,500.

Ethereum at 1-month low, ready to test crucial 560.00

ETH/USD Daily Chart - 24-05-18

ETH/USD opened positive on Thursday with a 2.25% advance on the day at 590.00; before, the pair closed Wednesday as its third consecutive day in a row.

Ethereum has lost 20% on the last three days to trade as low as 560.00, its lowest level since April 20. The pair is testing now the crucial 560.00 area.

A break below this level would mean that the doors for the 500.00 level are open as there are not significant buyer areas between those two levels.

Below that, check the 465.00 and 400.00 areas.

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