Market report

CLEAN BREAKOUT SETS THE STAGE

London Block Exchange

2nd March 2018

The weekend looks good when the market is green, but we are not there yet.

CLEAN BREAKOUT SETS THE STAGE

The weekend looks good when the market is green, but we are not there yet

Yesterday's report speculating on the potential bitcoin breakout turned out to be right. Twitter sentiment has gone wild as bitcoin closed a daily candle above its 50 day simple moving average - a buy signal for technical traders. The bulls are back!

That's not all though. If the positive scaling news wasn't enough - with over 65% of recent blocks' transactions going through the new SegWit implementation -  a £700 billion ($1 trillion) money manager is 'joining the crypto frenzy'.

If you want even more, note that on the linear charts bitcoin finally broke its long-term December resistance and is appreciating despite Thursday's stock market sell-off. Nevertheless, a short-term bearish divergence is forming and we still have a long way to go before we go 'fully bullish' and start thinking of parabolic targets again.

THE END OF THE ALTS CYCLE ACT

Follow ether closely to understand whether your altcoin holdings will suffer

If you look at this twelve month view of bitcoin, you'll likely be reminded of what happened after last September/October - ether and altcoins started a large dip.

With the top 100 projects up 5.5% on average over the past 24 hours - rises in proportion with that of bitcoin - and ether, neo and eos all within a -1.5% to 1.5% daily change range, there may be more to this bitcoin pump than just swing trading. There are also rumours, however, that NYC are planning to go short.

It's possible that bitcoin will drop back below £7.3k ($10k) - giving alts some breathing room - but if that doesn't happen, keep following the ETH - BTC charts to get a sense of the trend. Alts will likely become cheaper and then the full cycle will probably repeat itself by the time ether stops dropping. Don't trust Twitter influencers trying to convince you to buy into alts right now with weird 'buy market percentage graphs' - the money honey badger is back!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

Blockstack Berlin is happening today! Follow the conference that is bringing together this exclusive line-up of speakers - check the hashtag '#BlockstackBerlin' every hour.

Dubai's World Blockchain & Token Summit is happening Sunday and Monday. With a more diverse group of speakers it also deserves a follow at #WBATS.

Brave New Coin published its weekly bitcoin price analysis. If you miss our mix of fundamental and technical perspectives over the weekend, they might be worth a look.

WHAT TO READ TODAY

An insight a day could give you more profits to play

Do you think 'merkle trees' relate to a crypto news website and 'coinbase' to an exchange? Then you must see this diagram of a bitcoin block in Bitmex's blog!

Do you think tokenized ecosystems are confusing? Worry not, Part II of this Medium post, Towards a Practice of Token Engineering, has you covered.

Do you think that you shouldn't be taxed whenever you use a cryptocurrency as a means of payment? Germany's Ministry of Finance agrees and won't tax like the US does!

  • Alts Cycle
  • ethereum
  • bitcoin
  • honey badger