Market Insights

This post is a translation of the weekly cryptocurrency analysis by Block Insight, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group. Due to the difference in time zone, we’re able to share Friday’s report today.

Summary

• Bitcoin (BTC) price to as high as $7,900 before falling about 4 percent for the week.
• Bakkt, Intercontinental Exchange’s (ICE) U.S. crypto arm, is expected to begin offering BTC option trading next week.
• Short-term support for BTC is at $7,000.

Market Trends this Week

BTC prices found some temporarily relief early in the week from deeply oversold levels. Prices rose as high as $7,900 before BTC succumbed to selling pressure and dropped 4 percent. Traders will be watching the $7,000 area as the latest level of support.

On the equities side, the U.S market finally pulled back after a steady uptrend over the last several weeks.

Traders will be watching governments to see if there will be any positive movements in terms of crypto regulations. With that being said, BTC is clearly in a downtrend at the moment and has yet to show signs of decisive buying.

Ripple (XRP) received good news when it was announced that major domestic exchange bitFlyer would list the currency. However, prices saw little impact.

This Week’s Topics

• European Central Bank (ECB) executive Benoit Coeure had favorable remarks on crypto, saying that “digital currency can replace cash.” (11/29)
• Swiss regulators remove legal barriers to blockchain with the hopes of stoking innovation. (11/29)
• Crypto exchange Coinbase patents a compliance tool which roots out “malicious” user accounts and suspends them. (11/29)
• Major auditing firm KPMG introduces new blockchain technology for supply-chain tracking. (11/29)
• A new survey shows that one third of all crypto exchanges have little or no policy to track a users digital trail to aid in preventing money laundering. (11/29)
• Data tracking shows that October posted the lowest volume trading for both virtual currency trading and margin trading. (11/29)
• CEO of exchange operator IDAX is missing, leaving users with no way to deposit or withdraw funds at the moment. (11/29)
• International Business Machines (IBM) has developed and patented blockchain technology which “prevents anonymous theft by drones” for drones that deliver packages. (11/30)
• New regulation may allow German banks to sell virtual custody in crypto, something that has not happened up until this point. (11/30)
• The Financial Activities (FATF) and Japan have entered into a field examination with the goal of rooting out money laundering. (12/1)
• The Russian central bank says that private digital currency can not be identified and therefore cannot be legal. (12/2)
• Networking giant Cisco Systems (CSCO) secures a patent for blockchain technology which protects 5G data. (12/2)
• Exchange operator bitFlyer will now support Ripple (XRP). (12/2)
• Fobi Russia will launch a platform for the listing of tokens. (12/2)
• China initiates the process of issuing digital currency for the first time in other major countries. (12/2)
• Singapore-based crypto exchange Huobi has joined a blockchain alliance supported by the Chinese government. (12/3)
• The “Vertcoin” digital currency project, which aims to decentralize mining power, suffered a cyberattack for the second time. (12/3)
• Exchange operator Binance has launched “Binance X”, a platform for blockchain development. (12/3)
• SoftBank has released a debit card with a digital currency wallet function. (12/3)
• Blockchain start up firm Power Ledger discloses plans to test a peer-to-peer (P2P) solar energy trading platform in India. (12/4)
• Bakkt’s BTC futures have seen rising activity as open interest increases to $6.5 million. (12/4)
• China’s firewall system has censored several popular information sites about Ethereum blockchain data. (12/4)
• ECB announces intent to formulate in house digital currency if private efforts are found to be insufficient. (12/5)
• Soccer team Juventus issues new “fan token” using blockchain technology. (12/5)

Next Week’s Market Forecast

Bakkt BTC options trading will launch next week. Beginning with the launch of their futures service in September, Bakkt has been steadily expanding efforts for more access to digital assets. Traders hope this can help revitalize the market. The Chicago Mercantile Exchange (CME) is also planning to launch their offering of BTC option trading in January. The release will be of keen interest to crypto traders.

With global factors such as the US-China trade negotiations calming down, equities markets may see less activity. If that happens, investors may look to crypto assets for more volatility.

Technical analysts are pointing out the possibility of a potential “bullish crossover” occurring next week in BTC with the 50-week and 100-week moving averages (MA). A “bullish crossover” gives a signal when a faster moving average crosses over a slower moving average. In the short term, traders will want to see the $7,000 level hold for evidence of a potential bottom.

Note: Equities and Futures accounts are offered by TradeStation Securities, Inc. Crypto accounts are offered by TradeStation Crypto, Inc.

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