Bitcoin and Ethereum Stuck in a Tiny Range

During the past few days, bitcoin traded in a tight range above the USD 6,400 support. BTC/USD climbed above the USD 6,500 resistance, but it failed to gain momentum above the USD 6,550 and USD 6,600 resistances. Similarly, ethereum price traded in a range above the USD 200 handle. ETH/USD needs to surpass the USD 208 and USD 210 hurdles to move into a bullish zone. Overall, the current price action (UTC 08:20 AM) indicates that both major cryptocurrencies are preparing for the next big move, which is likely to ignite a lot of volatility in the market.

Bitcoin price
There is a strong support formed near the USD 6,400 level in bitcoin price . BTC/USD is currently trading in a USD 100 range, with an immediate resistance at USD 6,490. A successful close above the USD 6,490 and USD 6,500 resistance levels is likely to set the pace for an extended upward move towards USD 6,550. However, the price must break the USD 6,600 weekly resistance for a larger rally in the coming days.
On the flip side, an immediate support is at USD 6,450. If the price breaks the USD 6,450 support, it could visit the main weekly support near USD 6,400, below which sellers are likely to take control.

Ethereum price
Ethereum price is confined in a range above the USD 200 support. ETH/USD is facing many hurdles near the USD 206, USD 208 and USD 210 levels. Therefore, a daily close above USD 210 is needed for an upside acceleration.
On the other hand, if there is a downside break below the USD 200 support, the price is likely to decline sharply towards the USD 185 pivot level.

Bitcoin cash and ripple price
Bitcoin cash price is currently consolidating below the USD 440 resistance, which was a support earlier. BCH/USD must break the USD 450 and USD 460 weekly resistances to climb towards USD 500 this week. If not, there is a risk of a downside break towards the USD 400 support in the near term.
Ripple price is trading with a bullish bias above the USD 0.440 and USD 0.450 supports. As long as XRP/USD is holding gains above the USD 0.440 support, it is likely to trade higher towards USD 0.500 and USD 0.520.

Other altcoins market today
Most altcoins traded in a range during the past few hours, but a few were up between 5%-15%, including NXT, POLY, MGO, FUN, IOST, REP and PAY.
Overall, bitcoin and ethereum are stuck in a tiny range and it seems like both are preparing for the next big move. If BTC/USD surpasses the USD 6,600 resistance, there could be a rally towards USD 7,000 or USD 7,200. Conversely, a daily close below USD 6,400 may well push the price towards USD 6,000 and USD 5,800.


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Author: Aayush Jindal
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12 Days of…Nothing – What’s Happening to the Market?

Last week, we reported that bitcoin prices are now nearly as stable as Apple stocks, however, it appears that we were just scratching the surface for how stable these prices can really become. It may be a sign that bitcoin is nearing a bottom, according to experts. However, no one knows when the next major move will happen.

Compared to last Monday, the bitcoin price is practically unchanged, giving developers the calm they need to put their heads down and work, while traders are becoming increasingly restless.

Over the past 12 days, bitcoin prices have been so stable that technical analysts, who make trading decisions based on patterns and indicators on charts, are scratching their heads trying to figure out where the price is headed next.

In an article from CNBC this weekend, bitcoin’s record-low volatility is presented as surprising news given the sharp sell-off that occurred in the global stock market last week. “As U.S. stock markets went haywire this week, the major cryptocurrency known for giving investors whiplash was surprisingly calm,” according to the report.

However, the network’s go-to guest for all-things crypto, CEO of crypto investment firm BKCM Brian Kelly, reminded that crypto remains a non-correlated asset class, saying “I don’t know of anyone saying ‘Microsoft dropped, I better sell bitcoin to cover my margin’.”
Meanwhile, others argue that low volatility is a sign that bitcoin may be nearing a bottom. As Bloomberg Intelligence analyst Mike McGlone noted, high volatility is a major factor lessening most cryptocurrency use cases for anything other than speculation. In the same report by Bloomberg, Charlie Morris, multi-asset head at Atlantic House Fund Management in London, added that “Given this bear market is now 10 months old and is getting tired, I’d be inclined to be bullish for the next major move.”

In the meantime, Google searches do not show that people’s interest in bitcoin is picking up, which might mean that the market relies on existing investors, mostly.
Looking at global search interest for the word “bitcoin,” we can see that it is now at the lowest levels seen since April 2017, when the price of bitcoin was just over USD 1,000. Related terms like “buy bitcoin” or “trade bitcoin” gives us nearly identical results.


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Author: Fredrik Vold
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How the Growth of Robo-Advisors Could Boost Crypto

Mainstream economists and financial advisors appear, for the most part, intent on advising people away from cryptocurrency. They say that crypto is too ‘volatile,’ that it’s used only for ‘illicit’ purposes, and that the crypto-market is the ‘perfect bubble.’
Yet aside from Bitcoin proving itself to be fairly resilient in the face of recent market turbulence, there could be another reason why advisors may become likelier to recommend crypto in the near future.

That’s because their places are being increasingly taken by robo-advisors. Recently, financial institutions and companies in the US and Europe have begun using such algorithm-based advisors more frequently, and given their lack of biases and emotions, their increasing use would imply that there’s a correspondingly increased chance that cryptocurrencies will be selected more freely on behalf of clients.
However, while such a prediction is plausible in theory, it hasn’t yet come true. Most robo-advisors haven’t been programmed to include cryptocurrencies in the range of assets they can add to portfolios, a situation which is likely to persist for as long as crypto remains an unregulated, ‘alternative’ investment.

Robo-advisors have enjoyed enviable growth among smaller investors – particularly millennials – who can’t afford to pay the higher fees of a human financial advisor. For example, the UK- and Italy-based MoneyFarm saw its customer base grow by 281% in 2017 to 30,000.
Generally, customers who want to take advantage of such robo-advice services pay a (relatively) small fixed monthly fee, or a percentage of their annual account size (e.g. anything from 0.15% to 1%).

In principle, how robo-advisors work is simple: customers answer a range of questions that assesses their ‘risk profile,’ and then on the basis of this the advisor – basically an algorithm – selects a range of mutual funds and ETFs (exchange-traded funds) in which to invest for them. Their choice of investments is generally based on modern portfolio theory, meaning that they choose an uncorrelated range of asset classes so as to diversify against risk.

That’s it, although in addition to the automated advisors being offered to consumers by startups, there is also a growth in the number of big financial institutions and banks offering them to ‘bigger’ clients. In Sweden, for instance, Nordea bank is cutting 6,000 of its permanent positions as it introduces automation of asset management (and other services), while many banks throughout the globe are following suit with similar moves.
In other words, robo-advisors are likely to become even more popular in the coming years, and according to Eric Jansen, the CIO of AspenCross Wealth Management, they’ll help bring new demographics into investment.

“Robo-advisors are a great option for entry-level investors because of their low fees, low cost threshold and ease of use,” he wrote in June. “If you have USD 25,000 or less to invest, robo-advisors may be a great option to help you get started.”

Of course, as great as robo-advisors may sound in theory, they still haven’t made the move to crypto just yet.
“As far as we can see there are currently no licensed digital wealth managers who offer crypto investments,” Michael Mellinghoff – the managing director at market research firm Techfluence – tells Cryptonews.com. “However, a German “robo” was on track to include this in their offer, but went bust in 2017. US based robo Hedgeable had a Bitcoin offering but just recently decided to unwind its robo business and pivot its business model to wealth APIs [application programming interface] in a new firm.”

Mellinghoff notes that there are some new fintech platforms that permit automated investment in cryptocurrency, such as the US-based Crumbs and Hansel services that buy crypto for users with the spare change left over from their purchases. However, these don’t qualify as robo-advisors in the strictest sense of the term, and Mellinghoff believes that crypto-recommending algorithmic advisors won’t arrive until crypto cleans up its act.
“I think license owners will only be able (or dare) to offer crypto investments to their clients once cryptos have made the move into the licensed world,” he says. “This should apply to human as well as robo advisors.”

This caution aside, Mellinghoff believes that when crypto-friendly robo-advisors do become common, they may indeed end up recommending crypto more than their human equivalents. “Given that the demand for crypto seems to be generated mostly from millennials and robos often go after this target group, I would expect robos to offer crypto investments earlier than human advisors.”

Nigel Green – the CEO of the deVere Group financial consultancy – is another investment expert who believes robo-advisors will sooner or later recommend crypto, although his assessment is more optimistic than Mellinghoff’s.

“With cryptocurrencies become increasingly mainstream,” he tells Cryptonews.com, “it is inevitable that they will be incorporated by robo advisors further into investors’ portfolios.”
However, Green’s optimism means that he doesn’t think robo-advisors will be any more liable than average to invest in crypto, since cryptocurrencies will be mainstream enough to win over human advisors as well as those that operate on the basis of algorithms.
“This would be difficult to answer as there are so many variables,” he says. “However, the trend will be both robo and human advisors are increasingly likely to be recommending cryptocurrencies as an investment in the future. This is because demand for digital, global currencies is only set to increase in an ever-more digitised and globalised world.”


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Author: Simon Chandler
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Is Tokenization Threatening to Make the World Too Complex?

Even if the USD 13.7 billion earnings figure reported for initial coin offerings (ICOs) this year shows that public interest in ICOs hasn’t quite yet died down, signs have recently been emerging of a low-level backlash against promises that blockchains and tokenization are going to make the world a simpler, more efficient place.

At the Distributed blockchain conference in July, a number of speakers railed against unrealistic hype. Hyperledger’s Brian Behlendorf declared, “Blockchains are not a faster way to do anything,” while Oracle’s Emmanuel Abiodun argued that tokenization isn’t solving any fundamental problems and is “actually creating a more complex society than I can envisage.”
But while their concerns about the indiscriminate application of blockchains are well founded, there are constructive use cases for blockchains in certain clearly specified sectors, as argued by other figures within the blockchain industry.

“Any industry which goes through rapid expansion as it opens up to new possibilities, goes through a phase when numerous players dive into the market with the hope of making it big without adequately researching on the industry.”
Sankalp Shangari is the founder and CEO at LALA World, a Singapore-based startup that’s building a global decentralized financial ecosystem focused on the un- and underbanked. He agrees that there’s currently a glut of companies promising too much, but as he tells Cryptonews.com, he’s confident that a process of natural selection will bring the most valuable projects to the fore.

“After the initial boom, the market eventually settles with the most persistent players who get the basics right and deliver with a superior infrastructure to enable tokenization.”
Not only does he expect the industry to crystallize around a few dominant players, but he expects that tokenization will become simpler as soon as standards and platforms for blockchain interoperability – being worked on by the likes of Cosmos, Polkadot, and ICON – are realized.

“I would say that the interoperability of tokenized systems and tokens will essentially make systems simpler and easier to comprehend.”
And more importantly, there are blockchain-based systems – particularly in the area of finance – that will provide real benefits for people, largely as a result of harnessing crypto’s lack of borders and its cost-effectiveness.
“When it comes to developing economies, I can foresee that digitized money will bring the underbanked under financial inclusion,” he says. “The ease of access to finance and related services will enable the creation of inclusive economies.”

Gavin Brown knows a thing or two about cryptocurrencies and blockchains, being the director and co-founder of hedge fund Blockchain Capital, as well as a lecturer in finance and cryptocurrencies at Manchester Metropolitan University.
“I think the thing for me is,” he tells Cryptonews.com, “when you look at the actual coins themselves, of the 1,600 [or so currently in existence], about a third are trying to be money or money replacement, so they’re effectively trying to be Bitcoin 2.0.”

Given this profusion of coins, Brown acknowledges that a process of speculation, experimentation and uncertainty will be required before a “dominant design” appears.
“In other words, you’re trying to pick out a needle in a haystack […] So for me that becomes highly speculative in terms of trying to decide which one that’s going to be.”
And as common as ‘blockchains for x’ may now be, Brown affirms that some non-money blockchains are likely to have considerable utility.

“The classic example I would give is the IOTA one,” he says. “One of the things that IOTA can do is that it can work as a means of transferring information to allow route planners to enable trucks and lorries to come together into platoons, because you save 20% of fuel.”
In the past, the forming of convoys presented a classic ‘free rider’ problem, in that drivers would always be incentivized to follow rather than lead a platoon, since the lead truck wouldn’t share in the 20% reduction in fuel costs. “But in terms of the way the IOTA network works, micro-payments will be made by every truck that’s benefitting in the platoon to the lead truck in real-time.”

Here, therefore, is one example of a blockchain-based platform providing genuine benefits and solving a fundamental problem. And even though naysayers could argue that the tech underlying such platforms as IOTA is still too ‘complex’ for people to understand, Brown concludes with the observation that popular technologies aren’t understood by most of those who use them.
“Say my mum goes to buy coffee,” he says. “When she pays by card, she doesn’t understand the complexities of the Visa system, she doesn’t understand how settlement occurs and how the transaction is verified between each party, [but] she doesn’t have to.”


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Author: Simon Chandler
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Bitcoin and Ethereum At Risk of More Declines

Bitcoin price
There was no upward move above USD 6,500 in bitcoin price . BTC/USD remained under pressure and it slowly moved down towards the USD 6,450 support. At the outset, it seems like the price is struggling to remain above the USD 6,450 support and it could continue to move down towards the USD 6,400 support.
If sellers gain momentum, there is a risk of a downside break towards the USD 6,250 level in the near term. On the other hand, buyers need to clear the USD 6,500 and USD 6,550 barriers to push the price back in a positive zone.

Ethereum price
Ethereum price also followed bitcoin as it struggled to break the USD 205 resistance zone. ETH/USD is currently moving lower towards the main support at USD 200.
If sellers succeed in gaining strength below the USD 200 support, the price may decline sharply towards the USD 190 or USD 185 level. On the upside, an immediate resistance is at USD 205, above which the price may attempt to surpass USD 208 and USD 210.

Bitcoin cash and ripple price
Bitcoin cash price declined below the USD 440 support, which is a bearish sign. It seems like BCH/USD could continue to decline towards the next support at USD 425. The next key support below USD 425 is near the USD 405 level. The main resistance for an upward move is near the USD 450 level.
Ripple price is currently consolidating above the USD 0.450 support. XRP/USD may climb further higher if there is a break above the USD 0.460 and USD 0.462 resistances. On the flip side, a break below USD 0.450 may increase bearish pressure on ripple.

Other altcoins market today
Today, a few altcoins gained more than 10%, including revain, kyber network (KNC), veritaseum and nexo. Out of these, revain rallied more than 30% and KNC gained around 25%.
Overall, bitcoin price seems to be under pressure below USD 6,500. If BTC/USD continues to struggle to clear the USD 6,500 and USD 6,550 resistance, there could be a fresh downward move. Altcoins also remain at a risk of a downside break if they continue to face heavy selling interest.


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Author: Aayush Jindal
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We’ll Go There If We Have to: Visa CEO on Crypto

CEO of Visa, the payment card company, Al Kelly, said that he “certainly” does not view cryptocurrencies as a threat to his business right now, but added that “if we have to go there, we’ll go there.”

Speaking to CNBC, Kelly described the current state of crypto as more of a commodity than “a payment instrument.”

“There has to be some market…that it becomes somewhat of a fiat currency in order for us to be comfortable,” adding that “if it goes in that direction, we will move in that direction.”
Kelly did not elaborate on what he meant by his remarks that “there has to be some market” and that crypto should become “somewhat of a fiat currency.”

Towards the end of the interview, however, Kelly admitted that Visa as a company will not stand on the sidelines if they see crypto becoming a mainstream payment instrument: “We wanna be in the middle of every payment flow in the world,” Kelly said.

Although Visa itself has not yet jumped onto the crypto bandwagon, other companies, such as Hong Kong-based Crypto.com, have announced initiatives to issue pre-paid cryptocurrency Visa cards to the public. According to Crypto.com’s website, the Visa cards are already available to residents of Singapore, as the company prepares to expand distribution to more countries.

Former executives at Visa, however, appear to be more enthusiastic about crypto than its current CEO. In May of this year, Russian-British cryptocurrency bank Crypterium announced that it had appointed Marc O’Brien, the former head of Visa in the UK and Ireland, as its new CEO.

In a media statement given at the time, O’Brien said “I strongly believe that cryptocurrency is about to go mainstream, and we can be pioneers.”


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Author: Fredrik Vold
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Bitcoin [BTC], Ethereum [ETH], Litecoin and Bitcoin Cash draw the attention of Shark Tank’s Mr. Wonderful

Kevin O’Leary, Co-founder of O’Leary and Softkey, aka Shark Tank’s Mr. Wonderful invested $100,000 an app which could convert spare change into Bitcoin [BTC] and other cryptocurrencies, in exchange for 50% equity in Bundil.

The app automatically invests users change from their debit or credit purchases in cryptocurrencies. It sums up the day’s expenses and invests the space in cryptocurrency. The app supports top cryptocurrencies such as Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC] and Bitcoin Cash [BCH].The Founder of the app, Dimitri Love came to the show with the hope of raising over $100,000 for 10% equity. All the sharks except O’Leary backed out from investing in the app.

However, the offer made by Mr. Wonderful resulted in an unsettling environment as the proposed equity was 50%. The proposal left all the other sharks claiming that it was an unreasonable demand including Dimitri Love. Nonetheless, in the end, Love struck the deal with O’Leary, settling at 50% equity for $100,000.
Daymond John, Founder and CEO of FUBU, commented on the deal, stating that Love was not happy with the deal and looked “miserable”.

O’Leary also seemed to be quite optimistic about his investment, irrespective of his general perspective on apps. He  said on Twitter:
“#bundil could be the real deal! But the big problem with apps is that almost all fail within 36 months…this guy is going to need A LOT of help! #sharktank”

Omnipedia, a Redditor said:
“OMG, if you have a cryptocurrency app, you should damn well know what cryptocurrency is. Kevin was very generous. More than I would be. This app is trivial- the heavy lifting is done by an off the shelf service and he’s just making a UI for it… and there are competition doing the exact same thing going back four years.”

Busymon0, another Redditor said:
“Man that dude really looked super miserable when hugging Kevin after giving away 50% of his company. I for some reason feel like he will back out of the deal afterwards when reality hits him.”


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Author: Priya
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First Stablecoin Goes Live on Coinbase as Tether’s Struggle Remains

The popular US-based fiat-to-crypto exchange Coinbase has launched support for the new up-and-coming stablecoin USD//Coin (USDC), issued by Circle.

In a blog post, Coinbase said it is the first time they have ever added support for a stablecoin, while listing up benefits of the USDC, including improved send and receive functionality between wallets, convenient use in decentralized applications (dapps), and an easier way to store value than using physical US dollars.

Speaking at the Money 20/20 conference in Las Vegas on Tuesday, Coinbase president & COO Asiff Hirji said that the new stablecoin is “backed one to one with the US dollar, completely audited, completely transparent.”

USDC is a token created on the Ethereum blockchain, which means that it can be stored on, and transferred between, any wallets that are compatible with Ethereum’s popular ERC20 token standard. The new stablecoin is issued by Circle, a crypto start-up that has gained recognition and backing from financial giants like Goldman Sachs.

Earlier this month, Chinese crypto exchange Huobi announced that it had also added support for USDC, among other stablecoins like the Paxos Standard (PAX), TrueUSD (TUSD), and Gemini Dollar (GUSD). Moreover, the exchange recently announced their own stablecoin HUSD.

For a long time, Tether (USDT) has been the dominant stablecoin in the cryptocurrency market. Following recent controversies, however, it appears as if it is now facing some serious competition from a range of players in the market.

Largely because it has failed to provide conclusive evidence to back up its claim that all Tethers in circulation are backed by US dollar reserves, the stablecoin has been trading at a discount across most crypto exchanges that supports it for most of October.


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Author: Fredrik Vold
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Bitcoin and Ethereum recover but gains are limited

Bitcoin price tested the key USD 6,450 support area and later recovered. BTC/USD moved higher and traded above the USD 6,500 resistance, but gains were limited. Similarly, ethereum price recovered after dropping below the USD 200 support. It could continue to move higher in the short term towards the USD 208 and USD 210 resistances. Ripple performed well as it traded above the USD 0.450 and USD 0.460 resistance levels. Overall, the market sentiment slightly improved, but bitcoin is still trading well below the USD 6,550 and USD 6,600 barriers.

Bitcoin price
There was a downside spike towards the USD 6,450 support in bitcoin price . BTC/USD found a strong buying interest near USD 6,450 and later started an upward move. It traded up by more than USD 50 and broke the USD 6,500 resistance. On the upside, an initial resistance is at USD 6,520, followed by USD 6,550.
On the downside, the price could decline towards the USD 6,480 level if it fails to hold the USD 6,500 support. Any further losses may perhaps push the price back towards the USD 6,450 support area.

Ethereum price
Ethereum price slowly recovered and broke the USD 205 resistance. However, ETH/USD failed to gain momentum above USD 205 and the pair is currently consolidating near USD 204.
On the downside, an initial support is near the USD 202 level, followed by the key USD 200 support. To the topside, the price has to break the USD 208 and USD 210 levels to stage a decent rebound.

Bitcoin cash and ripple price
Bitcoin cash price remained in a range below the USD 450 resistance. BCH/USD seems to be facing a tough barrier around the USD 450 – USD 460 zone. On the downside, the USD 440 level is a decent support, below which the price may drop towards the USD 425 level.
Ripple price gained momentum recently and traded up by around 2.8%. XRP/USD broke the USD 0.450 and USD 0.460 resistance levels to climb back into the positive zone.

Other altcoins market today
A few altcoins gained between 8%-20% today, including MAGO, GVT, DROP, BCD, REP, NEXO, BTG and SC. Out of these, MGO gained around 17% and GVT traded up roughly 15.5%.
Overall, bitcoin price bounced back after testing the USD 6,450 support. However, the price has to surpass the USD 6,550 and USD 6,600 resistance levels to start a solid upward move. Until then, BTC/USD and ETH/USD may well continue to trade in a range. On the flip side, a downside break below USD 6,400 could open the gates for more declines in the near term.


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Author: Aayush Jindal
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S Korean Exchanges ‘Could Downsize’ as Gov’t Regulations Bite

South Korean cryptocurrency exchanges could be forced to downsize or start looking abroad for business expansion opportunities as government regulations take their toll on the country’s crypto businesses and investors, per industry sources.

According to media outlet Money Today, a number of South Korean cryptocurrency holders are transferring their funds to overseas exchanges to avoid having to deal with South Korean banks, most of which now follow government guidelines that require Korean won withdrawals to be made through real-name, social security number-verified bank accounts.
The guidelines require that all exchanges agree six-month contracts with a South Korean bank for customer real-name deposits and withdrawals, the terms of which are subject to change upon each renewal. Banks are required to monitor these accounts for potentially suspicious activates and report their findings to the government.

As trading continues to decline in the country, banks that had invested in cryptocurrency exchange-related infrastructure are thus finding themselves “spending more on risk management” as a result of the government’s regulations – and finding dealing with exchanges a lot less profitable than they had initially expected.

The media outlet quotes an anonymous employee at a South Korean cryptocurrency exchange as saying, “Exchange profits are down 90% on what they were when the market was at its peak [in December 2017-January 2018]. The exchange industry as a whole invested a huge amount of money in technology, management and security systems in anticipation of market growth, but instead, many are now losing money and may eventually have to look to reducing the size of their workforces.”

Market leader Bithumb recently sold a controlling share in the company to a Singapore-based enterprise, plans to launch operations in Hong Kong before the month’s end and also intends to expand its activities to Singapore and Europe in the near future. Its closest rivals are also looking to expand overseas, with Upbit set to open a Singapore branch and Coinone opening an exchange in Indonesia in August this year.

However, the same media outlet also quotes a bank official as stating that South Korean exchanges’ overseas expansion plans “would do nothing” to improve the lot of domestic customers, and thus would do little to help exchanges’ causes when it came to striking deals with banks – as required by the government’s banking guidelines.

Kim Hyung-joong, a professor at Korea University, told Money Today, “Investors are becoming increasingly anxious […] The government should consider the possibility of fostering the cryptocurrency sector by introducing new [and beneficial] crypto-specific legislation.”


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Author: Tim Alper
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