CBX Newsletter // 20 Feb 2019
- Bitcoin sees further Bullish continuation
- JP Morgan announces “JPM COIN”
- Send Bitcoin Tips on Twitter using the Lighting Network
Bitcoin sees further Bullish continuation
Bitcoin (BTC) is seeing a further continuation from the Bulls, the price has recovered from February lows and is now being traded at $3,950 on CBX. However, Bitcoin and other cryptocurrencies need to see a change in the long-term trend to convince investors that the crypto winter is finally over.
The market capitalization of cryptocurrencies is at $135 Billion at the time of writing, and BTC dominance has fallen a bit to 51%, usually, when the market is trading up Bitcoin loses dominance over the altcoins because investors seek more attractive investments.
On last week’s newsletter, we talked about $4,000 being the next resistance for Bitcoin and a psychological handle for traders so we can expect further volatility around that level. If the market manages to break that level then we will be looking at $4,200 and $4,500 resistance for further continuation. On the other hand, we can look at $3,500 and $3,200 support on the downside for a further test of the recent lows.
Some other indicators that can give us a hint of where the price might go are the Moving Averages. On the picture, we can see 3 MAs, the blue line is 50 day, the red line is 100 day, and the purple line is 200 day. For the last couple of months, Bitcoin hasn’t been able to maintain their prices above those MAs. Nevertheless, the Bulls have already pushed the prices above the 50 and 100 MA, let’s see if those levels can be maintained, we also need to keep an eye on the 200 MA.
For now, the outlook is still neutral, anything below $6,000 is just a lower high.
JP Morgan announces “JPM COIN”
Part of the reason why Bitcoin and the Cryptocurrency market suddenly started to go up has a fundamental basis. Jamie Dimon, CEO of investment bank JP Morgan, criticized Bitcoin and Blockchain during 2017 calling it a fraud. However, a few days ago the company announced plans to launch their own cryptocurrency named JPM Coin, which is the first step seen from a major bank into the world of Blockchain.
The company will use their coins to operate with large corporate clients that require international payments, so their project is not to be seen as an investment as the price of the currency will be always pegged to the United States Dollar, this will reduce volatility and reduce internal transaction costs within the bank, CNBC says. The bank moves over $6 trillion daily as part of their business.
Umar Farooq, Blockchain lead from JP Morgan, shared some main cases where JPM Coin can be used like replacing US Dollars that the bank holds internationally, settling very large transactions that happen daily especially with corporate clients which can take seconds instead of days, and also as a medium of exchange for other banks as well that transact with JP Morgan.
Send Bitcoin Tips on Twitter using the Lighting Network
Why give a Retweet when you can give Bitcoin? Tippin is an App available in the Google Play Store as an extension to Chrome users where they can send Bitcoin payments using the lighting network over Twitter.
When the extension is enabled, a lightning bolt symbol pops up next to every tweet and then a QR code appears with the wallet information of the recipient, which will be considered as the first time Bitcoin payments are accepted at a large scale.
All the user needs is a Twitter account and a Tippin account to send and receive payments, this is very important because with these types of solutions social media platforms can start to generate value within the app and influencers can get money directly from their fanbase instead of relying only on ads and third-party sponsorship.
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