CBX Weekly Newsletter // 10 April 2019
- Bitcoin Consolidates, Looking at $6K
- Facebook Coin?
- China’s NDRC labels Bitcoin Mining as an ‘Unwanted’ Industry
Bitcoin Consolidates, Looking at $6K
After many weeks of low volatility and price stagnation, Bitcoin (BTC) has successfully surpassed $5K in these last recent days, while other cryptocurrencies such as Litecoin (LTC) have seen gains of over 300% this year.
In the last week’s newsletter, we talked about reaching $5K and the next steps after that, so Bitcoin is trading at around $5,250 on most common exchanges including CBX. The all-time high for this year is $5,300 so far without any signs of a reversal yet.
Some investors are starting to take some profits, we can see a little retracement on the Daily charts, especially on the Litecoin chart where the price went up to almost the $100 handle without successfully breaking that resistance, so, for now, we have our higher high, we are waiting for a higher low to be set and then seek continuation.
Major support zones for Bitcoin lie at $5,000 psychological price; $4,900 which is the last low, $4,500 is where most moving averages are right now (on the daily continuation chart) and $4,200 which was the recent resistance now can serve as a nice support area.
Major resistance zones for Bitcoin will be between $5,500 and $5,750 which were areas with a lot of volatility during the fall from $6K to $3.5K during the end of 2018. And of course, we will expect to see high volatility and profit taking if the price reaches $6,000 again.
For now, the short term trend looks Bullish.
The overall market of cryptocurrencies is valued at $180 Billion according to Coinmarketcap.com.
Bitcoin dominance at 51.1%
Facebook Coin?
Social Site Facebook is seeking to raise one billion dollars in outside funding for its own cryptocurrency project.
This information was reported on a Tweet by Nathaniel Popper who is a technology reporter for The New York Times, saying that the firm seeks to raise the capital and use the funds as collateral to back the token, potentially a stable coin that can be used as a medium of payment for Facebook Messenger, Instagram, and Whatsapp users which are platforms owned by Facebook as well.
Facebook doesn’t really need to raise the capital as they have cash of their own, however, by raising money from outside investors they can present their project as a “decentralized” token and can potentially give a better perspective to the public.
Although the information hasn’t been officially confirmed by Facebook, it’s known that the social media giant has been working towards implementing Blockchain on their platform, after many reports of users especially young adults leaving the social media for other alternatives, this can be a way for Facebook to survive.
What do you think? Would you buy Facebook Coin?
China’s NDRC labels Bitcoin Mining as an ‘Unwanted’ Industry
China’s National Development and Reform Commission (NDRC) is proposing a revision of the existing Catalog for Guiding Industry Restructuring, which shows out industry activities that the country wishes to support, restrict and discontinue.
The revised proposal is still waiting for public feedback on the decision, however, it categorizes bitcoin mining as an undesirable industrial sector that should be discontinued in future development.
The agency published the first Catalogue for Guiding Industry Restructuring in 2005 to develop new sectors and boost future development. The Catalogue was later revised and updated in 2011, 2013, and 2016, respectively, and is undergoing another revision.
The public will have until May 7 to share their thoughts on the matter, before the final version becomes active. In that case, the revised guide might have a different approach towards cryptocurrency mining.
China is currently the home of the world’s largest cryptocurrency farming operations as well as mining equipment makers, so it will be interesting to see what the public’s response is and what the final version of the proposal looks like.
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