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Daily Crypto Brief, July 5 – Bitcoin 12K Rejection, Crypto Regulation and Techincal Analysis

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Yesterday, the 4th of July and US Independence Day anniversary, the bitcoin was moving in a tight range close to $12,000 but lacked the strength to move further. Continuing with the Asian session Bitcoin visited the $11,000 and is currently sitting slightly above this level.

The News Front

Crypto Regulation

It seems that the main news subject after Facebook has uncovered the Libra Project is regulation. Today, Crytoglobe reveals that The Cardano Foundation, involved in the ADA cryptocurrency, has joined GDF, the Global Digital Finance, a consulting group that helps set the regulatory guidelines for crypto projects.

[..] the Cardano Foundation went through a “mandatory rigorous process” to join the London-based industry membership organization GDF, which sets a “comprehensive code of conduct and overarching principles” when it comes to token sales, platforms, and fund managers.

Source Cryptoglobe.

Also by the Cryptoglobe, an article published yesterday, staff writers of this journal discusses the benefits of analytics firms and regulatory to help cryptocurrencies attain mass adoption.

The recent guidelines by the  Financial Asset Task Force (FATF), said the article, would require virtual asset service providers to know the identity of the users involved in the transaction.  A requirement that some people think is not feasible.  That is, according to the article, where blockchain analytics companies would play its role.

Irrespective of the desirability of the proposed regulations, blockchain analytics companies such as Elliptic will likely be instrumental in helping crypto companies remain compliant. One of the key ways this is done is to provide monitoring tools that help regulated crypto businesses identify and halt risky addresses and transactions that may be associated with hacks, money laundering or terrorist financing.

Read the full article here.

On a piece of news opposite to the regulatory issue, Crypto Briefing reports that the first Monero “Konferenko” that took place between June 22nd and 23rd in Denver, Colorado, discussed “new ways to secure privacy”

“On a scale of 0 to 10, where zero is completely transparent like in Bitcoin or Ethereum, and where 10 is God’s most private and secretive money system, most cryptocurrencies are at a 0. Coins like Monero and Zcash being used fresh out of the box are at a 1/10. To improve, users of these coins have to take additional steps to protect their privacy” – Dr. Brandon Goodell, Monero Research labs

So that meeting was an opportunity to discuss methods to improve privacy using Monero, including anonymous communication, new protocols to enhance private transactions, ring signature models and so on.

On the second day of this meeting, they discussed also regulations in a panel entitled Government and Privacy, what’s next?

Real-time payments Flexa and Litecoin

Flexa will add Litecoin to its Network of over 39,000 merchants. This article says that Flexa in partnership with cryptocurrency exchange Gemini launch a payment system for consumers has added Litecoin to its SPEND mobile payment app.

Tezos

Tezos, a decentralised blockchain project, announced a $1 billion deal with two major investment banks. BTG Pactual, one major investment bank in South America and Dubai-based asset management firm Dalma Capital, announced they plan to use the Tezos Blockchain to launch securities token offerings (STO’s).

News by Cryptoslate.

 

Technical Analysis

 

Bitcoin



Bitcoin price dropped during the Asian session and is forming a slightly descending channel that, if confirmed, may drive the price to visit the $9,000 level. The 4H MACD  had a crossover to the bearish side today and the CCI dropped to the negative band. The stochastics is heading down but it is not in the oversold territory yet. Currently, the price is in a support zone. We have to observe if it is rejected from it or crosses it to continue descending.

Ripple



 The latest price action by Ripple has crossed the lower-channel trendline. The stochastics oscillator continues in oversold areas while the MACD and CCI are both clearly bearish. The next support is 0.36243. After that, the round-number key levels that would act as supports are 0.34, 0.32 and 0.3.

Ethereum




 Ethereum hs moving in support areas, but the price action is sluggish in what seems a slightly descending channel. The Stochastics is in a zone where the price bounced on previous occasions. The MACD is slightly bearish while the CCI is bearish. If we consider the large yesterday’s bearish candle, there is a high likelihood the price would test the $274 and the $261 levels.

Litecoin




Litecoin recent price action has broken the ascending support trendline. The Stochastics and the CCI are bearish and also the MACD is entering a bearish phase. All this combined makes us think that LTCUSD will continue moving down to test the $111 support level. The price is in a region with a lot of volatility. Therefore, we can also expect noisy price action.

Iota



 Iota’s price action is currently touching supports. All indicators point to a continuation of the bearish sentiment and the daily chart shows a kind of head and shoulders pattern, although that is not that frightening as it seems. That is so because 50% of the time the potential H&S pattern is nothing more than a continuation to the upside. That means this pattern thas the predictability of a coin toss.

What we must pay attention to is how the price reacts in this area. Currently, the bias is negative, but the stochastics are close to oversold, and if we observe the chart we can see that at this stochastics levels there were a lot of price bounces and rejections to the upside.

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