Cryptocurrencies Found Support on Monday, but Tuesday Looks Grim

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by | 12th June 2018 | 0 comments

Major cryptocurrencies found support on Monday after the weekend sell-off. Bitcoin closed positive at 6,880, Ethereum finished green at 530, while Bitcoin Cash finished Monday at 950. All three with anemic recoveries from multi-week lows reached on Sunday.

Apple bans crypto mining

After updating its developer guidelines, Apple informed that cryptocurrencies “mining” would be strictly monitored at iOs devices. The new framework will restrict apps that generate excessive heat, drain the battery, or put unnecessary strain on device resources.

Specifically about mining, Apple says: “Apps may not mine for cryptocurrencies unless the processing is performed off device (e.g. cloud-based mining).”

The company also comments: “apps, including any third party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining.”

On the other hand, Apple remarks in the new rules that apps may facilitate virtual currency storage, transmissions of crypto assets, facilitate ICOs, cryptocurrency futures trading “and other crypto-securities or quasi-securities trading must come from established banks, securities firms, futures commission merchants (“FCM”), or other approved financial institutions and must comply with all applicable law.”

Blockchain cannot support financial market infrastructure – Dutch central bank says

The Netherland Central Bank DNB concluded that blockchain could not fulfill the needs of a financial market infrastructure, according to a 3-year experiment conducted by the DNB.

“Blockchain technology as yet fails to meet the very high demands of a financial market infrastructure,” said the bank in a press release. “Among the principal limitations are capacity shortages, inefficiency caused by high energy consumption, and a lack of full certainty that a payment is completed.”

Financial market infrastructures shall meet high requirements in the areas of “authorization, availability, capacity, costs, efficiency, finality of payment (legal certainty), reliability, scalability, security, sustainability, and resilience.”

The Netherland Central Bank DNB , on the other hand, notes that “blockchain technology could improve a financial market infrastructure’s resilience to external attacks, at the expense of its capacity and efficiency.”

Bitcoin bounces at 6,650, but recovery paused at 6,870

After the Sunday sell-off, Bitcoin found support at the 6,650 area against the US Dollar, where the pair started a modest recovery that led the cross to close Monday at 6,880.

Indicators are pointing to the downside with moving average aligned to the south and RSI confirming bearish momentum.

On Thursday, BTC/USD is trading at 0.20% down on the day at 6,835. If the pair is not able to extend gains, it will find next supports on April’s lows around 6,450, then 2018 minimum at 5,870, and 7-month low at 5,510.

To the upside, BTC/USD needs to hold above the 6,600 area before thinking of recovery. The pair needs a close above 7,060. Next resistance above that level will be at 7,250, 7,370, and 7,745.

Ethereum attempts a recovery, but indicators don’t help

ETH/USD Daily Chart - 12-06-18

Ethereum closed Monday with gains as the cryptocurrency bounced back from 500 to close the day at 536.85. ETH/USD is currently trading sideways around 530.00.

Moving averages are aligned and pointing to the south, while ETH seems to be oversold but RSI is confirming the downtrend has more room to go.

Buying areas are at 500.00, 440.00 and 365.00. On the other side, ETH/USD needs a close above the 560.00 critical level to start thinking about some recovery.

Above that, Ethereum will find resistances at 600.00, 625.00 and the 50-day moving average at 655.00.

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