Cryptocurrency Market Analysis #7
BTC/USD: Stand by
The whole crypto currency space is stabilizing since last week.
As explained in our last paper, the recent newsflow is pointing new services allowing institutional actors to legally invest in crypto currencies. This is supportive for the BTC, but only in the short term. The FUD (Fear Uncertainty and Doubt) regarding Tether was eased following a publication from the issuing company. This publication says that every Tether is backed by a true USD, as it is supposed to be. It is also providing a study made by FSS to ensure that these declarations are based on true facts. Some voices claim this audit is not rigorous enough, especially regarding this statement in the paper: “FSS is not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles”. Nevertheless, we believe the market should be relieved, at least temporarily, regarding this issue.
Despite those positive factors, the global picture is still ugly:
If we take a closer look at the current stabilization, it’s obvious that the bullish mood isn’t totally here…
XLM is still losing strength, which is a strong bear signal, and pushes us to question the sustainability of last hour’s price gains (A). BTC tested the 6850 resistance for the third time over the last 2 days. It failed at every attempt.
Volumes are stabilizing, with a slight upward bias. Long positions are strengthening while short positions are decreasing gradually. A short squeeze cannot be ruled out but seems very unlikely. We believe we might face an extend stabilization period around current levels. We might also see several strong and temporary volatility episodes like the one highlighted in (A).
Next Cryptocurrency Analysis : 28/06/2018
ICO Launching Fall 2018
