CBX Weekly Newsletter // 8 July 2020
- Bitcoin Price Analysis
- Gold futures settle at nearly 9-year high
- Nearly $60M in Bitcoin Moved to Ethereum in June
Bitcoin Price Analysis
Another week of market consolidation, we can see the market getting very tight into the flag pattern and a breakout is highly likely this week.
The $9250 resistance held for the entire week and only managed to break through on Monday. Looking at the charts for today, it is likely this will act as a new support level as we expect the market to break upwards.
Actionable plans
Market having broken the resistance level and showing signs of rebound is an indication of a strong push upwards.
Long opportunity at the Support level of $9250. SL at the broader trend line level of $8900-$9000. If prices break the support and push to the trend line, I would have a change of sentiment for bearish movement.
If the market breaks below the trend line, enter short @$8550, TP2 @ $8000. SL@ $9100 a minor support level.
Gold price settles at nearly 9-year high
Gold futures finished at their highest settlement since September 2011. Gold is priced at $1,809 an ounce at the time of writing.
Precious metals silver and gold have been the clear winners during the COVID-19 pandemic that has undermined global economic growth and has required unprecedented stimulus from central banks and governments around the world.
Although Gold is a good investment sometimes it is hard to get the right exposure to it, common reasons are high fees, authenticity, or custody just to name a few; which makes it a less convenient asset to invest on the modern era.
During Bear markets, Many players in the Crypto industry have been hedging their profits using Stablecoins such as Tether (USDT) which is pegged 1 to 1 to the US Dollar or any other alternative token that tracks the price of a fiat currency.
Now that the Stablecoin space has further evolved and many new projects have emerged, a number of projects are developing new tokens that can be pegged to assets and commodities like gold.
CBX’s latest listing AurusGOLD (AWG) is a fintech company replicating the traditional gold market in a digital way. The Aurus protocol provides a gold-backed digital currency collateralized by, and redeemable for 1 gram of 99.99% LBMA-accredited Good Delivery gold.
AWG is almost 8% up since listing and is one of the easiest ways to get exposure to gold without leaving the crypto space.
Try it yourself. Trade AWG here -> https://www.cbx.one/trade/AWG-USDT
Nearly $60M in Bitcoin Moved to Ethereum in June
Nearly $60 million worth of bitcoins moved to Ethereum during June, according to data estimates from Dune Analytics. Wrapped Bitcoin, the oldest tokenized bitcoin protocol on Ethereum, is responsible for roughly 75% of that growth after moving more than 4,800 BTC to Ethereum last month.
Demand has increased for using bitcoin in a variety of decentralized financial services as Ethereum continues to be the most popular off-chain destination for bitcoins. More specifically, yield farming and MakerDAO adding tokenized bitcoin as collateral are likely strong catalysts.
Currently $132 million worth of bitcoin is on Ethereum, at the time of publication, or roughly 0.08% of the leading cryptocurrency’s market capitalization, according to OnChainFX.
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