Another week in the Cryptosphere has rocked up and, as usual, it looks like it’s going to be a busy one! Your regular, weekly market outlook is here, fully-stocked with a look-back at last week, some price action analysis on our hottest pairs, a bit of news and a fun fact. Is there a better way to start off your week? Let’s get to it!
Market Highlight — What Crypto Needs for Mass Adoption
Blockchain is faster and more secure than any other currency system we’ve ever known. It can send people into space and has the ability to help top brands manage the logistical mayhem of 21st Century commerce. But many are still daunted by the prospect of blockchain and crypto. So, what’s needed for crypto to jump that long-awaited hurdle of mass-adoption?
Primarily, blockchain and crypto need to be the number one solution to a long-standing, wide-ranging problem. Not only that, though, these digital tokens need to be easy to understand and cheap to use and they also need to be supported by commercial enterprises and big businesses. Pretty tough criteria!
Crypto is still very much a work in progress, with new projects launching every day. Indeed, the space is developing at a rapid pace. One major new development are stablecoins, like Tether. A little over a year ago, there was no such thing as a ‘good’ stablecoin. Today, stablecoins are a stable asset that can be used for things such as payments services — to buy food, or clothes and so on. This is the real-world use that crypto has been crying out for.
That’s not to rule out the other big players in the crypto space. Bitcoin, the legendary crypto coin, for example, was created to allow easy, fast and cheap peer-to-peer transactions. Which is a very credible solution to a wide-ranging problem — great!
Both stablecoins and many other crypto coins and tokens, like Bitcoin, do have a credible real-world use. The main blocker, then, is commerce. Slowly, but surely, businesses are coming around to the idea of accepting crypto as a main source of payment. The more that these companies favour crypto, the greater the chances of mass-adoption. It could be right around the corner.
At the beginning of last week (28.10), the total crypto market capitalisation stood at $254.97 billion. The market closed the week with a total market capitalisation of around $246.39 billion, signifying a slight decrease by $8.58 billion (3.37%) over the week.
Our Most Popular Instruments — Analysis
Our most traded pairs over the last week have been: BTC/USD, EOS/USD and LTC/USD. Find out what affected them last week and what’s coming up in the week ahead.
Last week was another funny one for BTC. A slow and steady decline culminated in it popping below the $8,000 support, before bouncing back again midweek.
Bitcoin is currently trading above the key supports around $9,000 and $9,200. For BTC to remain in an uptrend and start a fresh increase it must stay above $8,600, and there are positive signs that Bitcoin may have gone full reversal and is switching to bullish momentum.
Price is slowly moving higher and it could retest the $9,770 resistance area in the short term. Currently, the BTC price is well supported and the chances of us seeing a surge above $9,800 in the coming days are not impossible.
EOS is hanging on above its support, which is an encouraging sign. It means that the bulls are defending the lower levels. If buyers can jump in and push the price above $3.57, EOS could well utilise that momentum and consolidate on it before moving up to the $4.87 mark.
On the downside, however, if the bulls fail to charge above that $3.57 resistance, the EOS/USD pair could see itself sitting in a tight range between $2.40 and $3.37 this week.
Ether (ETH) has held a steady course over the past few days, without doing anything too exciting. At the time of writing, ETH is valued at just over $180, and its next support on the downside is at $161. The primary objective this week is for ETH to steer clear of this level.
If Ether manages to climb above the resistance at $196, there’s an increased likelihood of a rally to the $235 mark.
Crypto News — In Case You Missed It
- French students to study crypto at school. France is planning to introduce an educational module to its high school curriculum which will feature teachings about Bitcoin (BTC) and other popular cryptocurrencies. In June, the French Ministry of Education updated its study plans to include modules on cryptocurrency. French teachers will give an introductory course designed to assist students in understanding the impact that Bitcoin could have on the French and global economies.
- Starbucks Becomes Bakkt’s First Launch Partner. According to the Bitcoin futures platform, testing of a crypto payments app and merchant portal will be completed by July next year and Starbucks is fully signed up as a launch partner. Over the past few years the US coffee giant has been consistently rumoured to be opening up a Bitcoin payment option and it looks as though that time may well be coming.
Crypto — Did you know...
...that Bitcoin was valued at just $0.02 in early 2010, around a year after it first launched. At the time of writing, a single Bitcoin will set you back $9,341.01 — that’s an increase of 46 million per cent. Now that’s a return on investment!
What do you fancy trading this week? Tweet @DSX_uk and let us know!
Hopefully, see you soon!
The DSX Team