Welcome to our weekly crypto market update. This article aims to bring you all the latest information from the crypto world, including market news, price analysis and some crypto trivia. The idea is to give you a neat and tidy overview of all-things-crypto, to help you make better trading decisions this week. Ready? Let’s go!
Market Highlight — How Blockchain is the Future of Activism
The world is an increasingly active place. More and more people are turning to political, social and ecological activism, as the issues that affect our societies continue to permeate all walks of life. Finding an effective way to organise and implement a movement, however, is not easy. Offline methods are almost impossible. Social media/clicktivism is dying a death. So, where next? How about blockchain?
Blockchain and crypto could very well be the future of activism. Here are three reasons why:
1. Fundraising — crypto is changing how groups fundraise. Political groups have looked to crypto as a way of fundraising away from institutions that might be looking to stop them or limit their potency. For example, the Hong Kong Free Press, which raised funds in Bitcoin to help provide impartial coverage of the Hong Kong protests.
2. Changing the status quo — Blockchain has opened up the possibility for people to think about a kind of parallel universe in which people can redefine their social relations with one another. Blockchain is like a sandbox that offers new ways of thinking about the relationship between centralised and decentralised decision making.
3. Anything goes — Blockchain is literally re-defining the potential of what technology can do. Developments like Smart Contracts are potentially gamechangers in the world of activism. Imagine an automated, political movement that lies dormant and only executes when certain, un-democratic conditions have been met.
You might be reading this thinking, “Yeah, that’s great, but why is this here?”. Well, if you’re in any way a fan of crypto, or finance in general for that matter, you’ll likely know that the holy grail of any market is achieving mass adoption. The very thing that successful activism requires. The marriage of these two, as time goes by, will mean that blockchain is increasingly infused into society. So, long story short — this is very good news for crypto enthusiasts.
At the beginning of last week (25.11), the total crypto market capitalisation stood at $195.10 billion. The market closed the week with a total market capitalisation of around $199.15 billion, which is a small increase of $4.05 billion (2.08%) over the week.
Crypto Price Analysis
The DSX exchange lists a whole host of fiat/crypto, crypto/crypto pairs to trade, but each week we like to select a handful of our most interesting ones and go over a little price action. This week, the most interesting pairs have been: BTC/USD, ETH/USD and BCH/USD. Let’s take a quick look at these instruments in a bit more detail, see what they were up to last week and what could be coming up this week.
Bitcoin is struggling to stay above $7,300 amid expanding volatility. This is, however, a marked rise on last week’s midweek slump to under $6,900.
The first objective for BTC is to stay above $7,000, at all costs. This is a psychological support, as much as anything.
On the upside, a push over $7,500 will signal the start of a nice recovery for Bitcoin. Some diehard believers will still have faith in BTC being over $8,000 before the end of 2019. Only time will tell, but at the moment that’s looking more difficult than it did a week ago.
This past week, ETH started a solid recovery above the $142 resistance area. It also surpassed a major resistance area around the $150 level.
At the time of writing, ETH is sitting just above $150, and this is important, having broken the $145 and $150 resistance levels. Some key resistance areas are incoming at $165 and $170, if Ether can stagger above these levels, then that would signal the beginnings of a recovery.
Now that it’s there, ETH needs to stay above $150. Should it fall, ETH is likely to retest the $140 support.
Bitcoin Cash is under a bit of pressure at the moment. At the time of writing, the cryptocurrency sits at $216, perilously close to the key support areas of $210 and $200.
A previous correction above $220 failed to take the price above $230. Instead, Bitcoin Cash stopped at $227, before dropping back down.
If the support at $210 gives in, Bitcoin Cash could break through the next support at $200. Consolidation is the aim of the game. If BCH can start pushing $220 again, it could settle some nerves. Until then, hold onto your hats.
Crypto News — In Case You Missed It
- German Banks Allowed to Sell Crypto Assets. From 2020, under new legislation, German banks will be allowed to offer the sale and storage of cryptocurrencies. The new bill goes further than had been previously planned. Originally, it was said that banks were not allowed to act as crypto custodians and has to rely on external custodians or dedicated subsidiaries. Read more here...
- Institutional Investors Are Pouring Into Bitcoin Derivatives. On the 22nd November, Bakkt, a physically-settled Bitcoin futures exchange, saw its trading volume shoot up to all-time high levels. According to data gathered from the Intercontinental Exchange (ICE), 2,728 BTC monthly futures contracts were traded on the 22nd November alone, which is equivalent to over $20.3 million. This sudden spike in volume represents a 66% increase over the previous 24-hour period. And, it is 30% greater than Bakkt’s previous all-time high of 1,756 BTC on the 9th November. Find out more...
Crypto – did you know…
The term 'Hodl' is one of the most iconic in crypto today. If you didn't already know, hodl is a word used to describe the likely behaviour of true lovers and supporters of a crypto.
Where did it come from? Well, hodl first originated during the December of 2013, around the peak of an early pump in Bitcoin history, when price surpassed $1,000 for the first time ever. On a popular forum, bitcointalk.org, a frustrated trader by the name of “GameKyuubi” started a thread titled “I AM HODLING”.
He presumably intended to type "holding", to indicate that he would keep his BTC and not sell. It turns out that Game Kyuubi was, in fact, a little intoxicated. The rest, as they say, is history!
What will you be trading this week? Tweet @DSX_uk and let us know.
Hopefully, we’ll see you soon!
The DSX team