Weekly Rekt #001— Market update & News
Technical analysis of the week
Disclaimer: this is not financial or investment advice, and we are not a registered financial or investment advisory boutique. This is also not a buy, sell, or hold recommendation for this project.
All Technical Analysis is provided by Emil. Follow him on TG for more of his work.
BTCUSD 1D on Coinbase
BTC recent top on 4th September 2018 the was $7400, which was a big weekly resistance and approximately a retracement of 60% go the last downward movement.
Even though price action is very bearish at the moment, Bitcoin has not created a lower low (yet) and formed a triangle with higher lows and lower highs.
In the weekly we can see that BTC formed a bearish engulfing candle — which indicates further downward movement in the next days.
Also worth mentioning is, that BTC held above the 100EMA so far, so keep an eye on that.
Short term resistances: ±$6600
Short term support:
If BTC breaks below $6000 the next price I’m watching is $5500 as this was the price of the last correction before the run to $20.000
ETH #Weekly #Coinbase
Ethereum took a big hit and broke an important support level — $300 and is currently at a lower price than 1 year ago.
(Low 52 weeks ago: $202.25)
If ETH can’t find support between 200–180 the next important zone to watch is $150-$130, which would be another ~25% price decrease.
In case of an upward movement, ETH faces the following resistances:
Best of the Week:
Webcoin with a 329%% gain
Worst of the Week
PKG Token with a -53% loss
It has been one hell of a week for Cryptocurrencies. Just when everyone started having hope that we are back on track to recovery, An Article on Business Insider was released titled:
Goldman Sachs is ditching near-term plans to open a bitcoin trading desk, instead focusing on a key business for driving Wall Street investment in crypto
Once the article took off, the snowball effect started and the market dumped instantly. USD Tether was the top gainer on September 6th 24hr chart.
One of the biggest losers in this series of events was Ethereum which to its lowest points since last year. As of writing this Newsletter, Ethereum is now sitting on roughly $200.
On September 6, Goldman Sachs CFO Martin Chavez spoke on the Business Insider report calling it Fake News.
I think one of the wonderful things about us is that we get written about a lot. I never thought I would hear myself use this term but I really have to describe that news as Fake news — Martin Chavez, CFO of Goldman Sachs
The market is still reacting to all the pieces that have been put out, but things are definitely at an unease at the moment.
Another story we got from Business Insider this week states that
Coinbase is exploring a crypto ETF and is seeking help from BlackRock
Business Insider has revealed that Coinbase has been exploring the prospect of a Exchange Traded Fund (ETF) with the backing of Wall Street Giant BlackRock.
Crypto ETFs have been the main talk in the Cryptosphere recently. Applications for Crypto ETFs are everywhere now with the backing of different institutions. Simply put, trading different cryptocurrencies today is not an easy task for the average middle aged investor who which is limiting the adoption of cryptocurrencies. The approval of Crypto ETFS is estimated to significantly affect the adoption of cryptocurrencies and make it easier for the average investor to join the market.
Coinbase combining with the Wall Street giant BlackRock is a significant move towards ETFs as the two may complete each other to reach the targeted ETF approval.
New SEC Commissioner is Pro-Crypto
With all the ETF applications and with the rumored Coinbase/BlackRock ETF, news come of the new commissioner of SEC. Mr. Elad Roisman has been selected for the position and his stance on cryptocurrency seems to be a positive one. In his Speech, Mr. Roisman talks about the importance of “approach(ing) these new challenges in a fair and transparent manner,” and emphasized on the need to “examine and re-examine its rules, regulations, and guidelines”
Story of the Week — Is Ethereum Dead?
This has been a red week in crypto in general but nothing has felt the impact as much as Ethereum did. This massive drop in price from All-Time-Highs to its lowest levels since last year has got the whole cryptosphere if it is really over for Ethereum.
Ethereum is without a doubt one of the most influential projects in the sphere of Blockchain. With the introduction of smart contracts, the possibilities for the project were unlimited. I am quite sure that when Vitalik conceptualized Ethereum, he did not envision a fund raising mechanism for ICOs. However, this is a decentralized space and the use of each project will be based on the space requirements despite what that project capabilities entail. With time, Ethereum’s main use case simply became a fundraising tool over the blockchain. ICOs would launch over the Ethereum Network and have the ERC20 tokens deployed in the fund raise. This saw the price of Ethereum rise to almost $1500 during its peak in January when it was ICO spring in the blockchain. ICOs were raising funds left, right, and center and the main way to do that was using ETH. This increase in demand naturally saw the price surge up exponentially.
Today, things are different. We are in ICO winter. Your average investor is being very careful with his or her money. In fact, we may be witnessing the death of ICOs overall. It is slow and painful and it has certainly taken its toll on the Ethereum price. In fact, in a recent interview with Bloomberg even Vitalik himself doubted the possibilities of possible future gains in the blockchain.
There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore. — Vitalik Buterin
With this in mind, barring the appearance of a sudden new use case for Ethereum, it is entirely possible that we don’t see the previous highs Ethereum hit. This has probably been the most common discussion around the cryptosphere over the past week. Is there light at the end of the tunnel for Ethereum?
There might be.
Ethereum 2.0 is being developed as we speak. The network is expected to combine:
- Proof of Steak — PoS (Beacon Chain,Casper)
While everything is still under development, we can’t really have a definitive answer on the future of Ethereum (or at least the future of the price). There seems to be a need for a new significant use case for Ethereum that can substitute the old use case of ICOs which seems to be ending. Will the future give us a new use case? Only time will tell.
Discussions of the Week
This week’s selected discussions include:
Meme of the Week
This week’s Meme of the Week is the ever giving Bitconnect meme. The meme that never seems to die. Apparently, people are STILL trying to get BCC listed on some exchanges. Not only that, but there is an active community trading it still. Amazing. Gotta get rid of those bags somehow!
Thankfully (or not), the rekt gifs have slowed down this week with the steady upwards movement. Doesn’t hurt to share one though
- Sept. 13 Pchain Testnet 1.0 Launch
- Sept.14 Global Litecoin Summit: Global Litecoin Summit from Sep 14–15 at South San Francisco Center
- Sept.14 Bitcoin Gold (BTG) Bittrex Delisting
- Sept.15 EOS Platform Launch and Airdrop