Market Update Report Feb.21

We had a positive, yet volatile, week in the crypto markets. Bitcoin’s price returned to the range of $10K and the Altcoins were following right behind. After a month of declines, the market seems to be stabilizing.

We expect that a sharp rise in Bitcoin’s price will have a negative effect on the Altcoin markets, in regards to trading against Bitcoin. A possible cause of this may be FOMO (or fear of missing out). Crypto investors are afraid to miss the gains in the price of Bitcoin and convert their Altcoins into Bitcoin. This leads to a decrease in the Altcoins’ value (in contrast to Bitcoin). Examples of this can be seen in the sharp Bitcoin rises that occurred in 2017 and 2016.

It appears that the drops in Bitcoin’s price since the beginning of the year, have finally come to an end, for the meantime. However, it is not yet possible to indicate a clear trend for the price of Bitcoin. The market seems to be still under correction. The highs we saw at the end of 2017, when the size of the market cap was valued at $800 billion, are far away from us. But at the moment, the market looks optimistic and its value has crossed the $500 billion mark lately, could possible be a positive sign.

In terms of ICOs, there has been significant growth both in terms of the increase in the number of crypto based companies and the increase of those companies raising funds through ICO. Recently, Telegram raised approximately 850 million, and Venezuela raised $ 735 million for their national Petro coin in just 20 hours.

Crypto news from around the globe

Iceland – There has been a power shortage in the country due to the country’s growing crypto mining industry. This is the first country in which the annual electricity consumption of the mining industry is larger than that of all the nation’s households.

Switzerland – The country has set regulation guidelines for ICOs. The country plans to base its regulation on three different classifications of the tokens: benefit tokens, payment tokens and asset token (which serve a function similar to a security bond).

The Israeli Tax Authority has published an official bill regulating the taxation of Bitcoin and other crypto currencies. According to the bill, the crypto currencies are defined as assets, and they will be taxed as such, not as FIAT.

USA: After last week’s Senate conference, Rob Joyce, a special adviser to the US president, announced that there is no regulation for crypto in sight.

Some News from South Korea: Cryptocurrency Investigator of South Korea, Jung Ki-Joon was found dead lately.

Crypto experts point to a correlation between the Chinese New Year and the price of Bitcoin and other crypto currencies. Starting in 2015, it seems that every year Bitcoin loses its value in January (partly due to sells for New Years events) and corrects up by February with the start of the Chinese celebrations.

The number of venture capital funds in the field of crypto have doubled within a period of two months and reached 220 recorded VC Funds.

Charles Noyes, a Pantera Capital analyst, predicts that “Ethereum’s market value could be 10 times higher than of Bitcoin by 2020.”

And last for today, An anonymous investor bought Bitcoin for $400 million, between The 9th-12th of February.

Charts

Bitcoin

Another week of increases: The resistance of around $10K was breached and brought a rapid rise to $11,700. However, the rapid increase led to a correction back to the $10K areas were support lies. Resistance level – $12k areas.

Ethereum

Against the dollar – Resistance at $950, and support is around $800.

ETHUSD

Against Bitcoin, the support around 0.1BTC has been surpassed, and the price is currently on a downward trend. A 1000 BTC sale wall appeared in Bittrex last week and caused panic in the ETH market, and a drop to 0.078BTC, breaking the support areas which were at 0.08 BTC. It is currently traded around 0.078BTC with support being wavering at around 0.075BTC. In this range, the RSI is in the floor (which is a positive sign).

ETHBTC

Bitcoin Cash

Against the dollar – trading is fairly stable. Support at $1200 and resistance in the $1400 area.

BCHUSD

Against Bitcoin – the support around 0.12BTC is being tested. At the moment, the resistance is at 0.14 BTC, and if it breaks, it will be possible to continue upwards.

BCHBTC

Monero

Against the dollar, since it’s all-time high in December (where it’s price reached $478), the trend is down. However, after a sharp drop in early February, which led the price reach the floor at around the $149 area, the price has now doubled itself and is now trading around $300. In this range, the resistance is around $320. We are anticipating Monero’s network fork, which is called MoneroV.

XMRUSD

Against Bitcoin – Resistance lies in the 0.03BTC areas.

XMRBTC

 

DECRED

Against the dollar, there is no trade, the breach of the resistance of around $50 in December led to a reversal of the trend. Once it broke resistance, the price soared to $134. Since the increase, the price is very volatile. Traded around  $80 with support in the $70 zones and resistance levels at $ 100.

Against Bitcoin – starting in June 2017, the price was undergoing continuous correction. Then, the top was at – 0.02 BTC, and from there the price gradually rose to levels of 0.0031 BTC, and from there the price started the move of the sharply upwards and due to the recovered rally. Support at 0.006 BTC, resistance at 0.009BTC.

DCRBTC

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Jennie

Jennie is an entrepreneur and private investor in blockchain projects . She writes about the blockchain community in Canada, altcoin development and launching ICO's.