Market report

FINALLY, SOME ACTION!

London Block Exchange

29th January 2017

Even though things are still pretty much the same as they were on Friday!

FINALLY, SOME ACTION!

Even though things are still pretty much the same as they were on Friday!

Shortly after last Friday’s newsletter was fully circulated, bitcoin’s price started climbing from one of its worst weekly bottoms. After breaking a key resistance on Saturday, it rose 17% to a high of £8,500 ($12,100) on Sunday morning.

It is now trying to find support at the top levels achieved last week, so some previously bearish traders are feeling bullish again as a powerful two-day reversal could be confirmed today. Note, however, that we haven’t reached the breakout level yet!

One important thing to remember is that as crypto markets are open all the time, one and a half months of bearish bitcoin activity is equivalent to a half a year long bearish stock market!

There are now also less reasons to feel that market manipulation from futures will significantly impact prices. The bullish expectations are also backed by lower fees than in 2017 due to less network congestion and SegWit adoption.

An example of SegWit’s impact is shown in a famous early investor’s recent transfer, where they moved bitcoin valued at almost £300 million for a fee of just £1 by adopting a new SegWit wallet! Here’s a great overview of how can you SegWit transactions too and here’s an explaination of the technology behind it.

WHAT ELSE IN THE WORLD OF CRYPTO?

Positive news for Bitcoin. Ethereum contender. Ripple’s breakout?

Besides the positive technical developments in bitcoin, the most important news has been the fact that Robinhood — a free stock trading app popular among US millennials — is getting into the crypto game. What’s best is that they don’t charge trading fees!

At the time of writing, 972,220 people have already pre-registered for early access to Robinhood’s crypto functionalities! The addictive app will provide bitcoin and ether trading options from February onward and will soon add 14 other cryptoassets! FOMO much?

This announcement seemed to be so bullish that the largest hack to an exchange in cryptoassets’ history, which was announced Friday afternoon, didn’t make a dent in the markets.

The majority of the stolen funds were XEM — a top cryptocurrency that powers the NEM blockchain — which is especially popular in Japan where Coincheck, the hacked exchange, is based. Coincheck promised to use its profits to refund the losses.

Finally, with regard to the rest of the crypto markets, it’s interesting to note that Stellar and its lumens token might be stealing Ethereum’s ICO game. Also note that, after a month of downturn, Ripple’s XRP is finally trying to break out!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

Check BraveNewCoin’s great weekly technical analysis of bitcoin: “A retest above £11k ($16k) by the end of the week is within the realm of possibility”!

Check your digital footprint and don’t brag about your crypto holdings. A trader in Oxfordshire was forced to transfer his bitcoin at gunpoint yesterday!

Check today’s action in Korea — new regulations for fiat transfers to exchanges come into place tomorrow and this could kick-off a bull run, especially as a major e-commerce platform “is integrating cryptocurrencies with Bithumb”!

WHAT TO READ TODAY

An insight a day could give you more profits to play

Some say Robinhood will crush Coinbase, but others believe the latter will just lower their fees. Read it all here, think for yourself and prepare for a new Coinbase effect!

Some say ‘weak holders’ are responsible for creating bearish markets, but if you analyse it further, it would appear to actually be the opposite! Read the explaination here!

Some say Bitfinex, a major exchange, can become the new Mt. Gox due to its Tether relationship. This is worrisome as Tether just confirmed its relationship with its auditor has “dissolved”!

  • bearish
  • bullish
  • bitcoin
  • Segwit
  • NEM
  • Regulation
  • Robinhood