Another week in the cryptosphere is here and, as usual, it looks like it’s going to be a busy one. As you know, the crypto market never sleeps, not even for Christmas, with our weekly DSX market outlook being stacked with all the latest news including last week’s updates, some price action analysis on our hottest pairs, a bit of news and a fun fact.
Market Highlight — Important Crypto Questions
It’s not always easy to find the answers you’re looking for, even in the age of the internet. For that reason, we thought we’d take a couple of frequently asked crypto-related questions and try and give them an explanation.
1.What Is the Difference Between Bitcoin and Blockchain?
Bitcoin (BTC) is probably the most popular decentralised digital asset on the planet, typically taking up around half of the total daily digital asset trading volume. Bitcoin utilises blockchain technology, but blockchain is not a cryptocurrency itself. Blockchain is the ledger that keeps an ordered record of all cryptocurrency transactions, which are cryptographically verified. This ledger is open, secure and accessible by everyone.
Transactions are broadcast to the network and are verified by miners, who earn a fee from doing so as a reward. So, to answer the question, blockchain is the technology that underpins Bitcoin and was developed specifically for Bitcoin. Bitcoin was the first example of blockchain in action and without blockchain technology, there would be no Bitcoin. That’s why the two names are often used interchangeably.
2.Will Libra Kill Off Bitcoin?
Another question we see a lot when traversing the Cryptosphere. This statement is not accurate at all. Facebook has done a lot to market Libra as a cryptocurrency, but it’s actually more of a stablecoin. When launched, it should feature low volatility, as its value will be tied to a currency, like the US dollar, or a commodity, like gold.
Libra will, hopefully, do much to bring crypto into the mainstream. Facebook has greater visibility than Bitcoin and this brings public attention. The fact that Facebook and its Libra partners are already in the public eye and, therefore, highly-scrutinised, will likely please those who are averse to the decentralisation and lack of accountability of cryptos like Bitcoin.
Libra and Bitcoin will co-exist because they appeal to different types of people. BTC will remain the ideal choice for those who want a cryptocurrency that’s decentralised and distributed. This lack of governance is exactly what appeals to many.
Crypto Market Cap Review
At the beginning of last week (16.12), the total crypto market capitalisation stood at $194.04 billion. The market closed the week with a total market capitalisation of $195.88 billion, signifying a small increase of $1.84 billion (0.95%) over the week.
Now we’ll take a quick look at some of the more volatile instruments, finding out what affected them last week and what could be on the horizon this week. Today, we’re looking at BTC/USD, ETH/USD and BCH/USD – all of which are fully tradeable, along with 55 other pairs, on the DSX exchange.
Last week, Bitcoin started a strong recovery pushing up from the $6,500 support zone. BTC price has since continued to rise, pushing up over the next resistance at $7,000. At the time of writing, BTC sits at around $7,400.
To buy or not to buy, that is the question! The longer BTC steers clear of the $7,240 support, the greater the likelihood of increased buy pressure.
On the downside, if the price slips back below the $7,100 mark, we may push toward the $7,000 support.
Last week, Ethereum also rode a nice recovery wave from the low of $115. ETH broke through a couple of resistance levels at $120 and $125 and even pushed up to $135. After a small drop, ETH currently sits at $132.
There are a number of strong supports on the downside, namely $125 and $122. If we do see a downward break below these support levels, Ethereum price might hit the $120 support level. If it keeps going, the next support is at $115.
If ETH can maintain its current trajectory, the next resistance level is at $135.
Bitcoin Cash is currently sitting at $193, at the time of writing, just above an important support, at $192. Bitcoin Cash has flirted with this support for the past week, but, so far, steered clear. Stay on this trend and a move to $203.36 could be possible.
BCH has a long way to go to hit its next support, down at $125. BCH hodlers will be hoping that the price stays above $192 and doesn’t lurch too far downward.
Crypto News — In Case You Missed It
- New Draft Bill Aiming to Classify Crypto Assets Introduced in the US Congress. The Crypto-Currency Act of 2020 sets out which Federal agencies should regulate each type of crypto asset. The new bill actually defines the three types of crypto asset; crypto commodities, currencies, and securities. Crypto-commodities are defined as economic goods or services, stored on a blockchain. Cryptocurrencies are defined as representations of US currency or synthetic derivatives resting on a blockchain. And Crypto-securities cover all debt, equity and derivative instruments on a blockchain, other than those which are operated and registered as money services businesses. Read more.
- Burger King Adopts Bitcoin Cash as an Official Payment Method. Bitcoin Cash (BCH) has been adopted by a Burger King restaurant in Slovenia, making it the first cryptocurrency to be transactable in physical Burger King stores. Despite a market cap 40 times smaller than BTC, Bitcoin Cash remains a popular choice among merchants thanks to low fees and near instant transaction times. BCH isn’t just popular in Europe, either — 197 Australian merchants currently accept Bitcoin Cash as a payment method. In October 2019, BCH transactions accounted for 92% of the value of all cryptocurrency payments made within the country. Read more.
Crypto — Did you know...
It’s always been widely believed that a ‘Satoshi’ (SAT) was the smallest measurable unit of Bitcoin, as 1 Satoshi equals 0.00000001 BTC. However, there is actually an even smaller unit of BTC that is already being used within the Lightning Network. A ‘Millisatoshi’ (MSAT), represents one-thousandth of Satoshi.
So, the smallest forms of Bitcoin actually look like this:
- 1 SAT = 1000 MSAT
- 1 SAT = 0.00000001 BTC
- 1 MSAT = 0.00000000001 BTC
Trade with DSX!
Don’t forget, you can trade all of the cryptocurrencies and tokens listed in this article on your favourite crypto exchange platform, DSX. Whether you’re an experienced trader or still learning the ropes, the DSX platform puts you in complete control. If you haven’t tried it yet, register now.
What do you fancy trading this week? Tweet @DSX_uk and let us know!
Hopefully, see you soon!
The DSX Team