Welcome to DSX’s weekly crypto market update. This 5-10-minute read is designed to bring you all the latest information from the cryptosphere, including market news, price analysis and some crypto trivia. We’ve wrapped everything up neatly in bitesize form, to help you make more informed trading decisions this week. So, without further ado, let’s get to it.
Market Highlight — Who will win the race for Crypto dominance?
There are literally thousands of cryptos in existence, many of which can be traded on our exchange. But, which one will win the race to the top? They can’t all be victorious, can they?
While we all know that there’s plenty of room for the likes of Bitcoin, Litecoin, Ether and Bitcoin Cash to coexist, some of the potential heavyweights of the future are the digital variants of fiat currencies. At present, the three biggest currencies in the world are racing to make their fiat digital. So far, China is winning that race and is set to announce the PBOC blockchain and digital Yuan early in 2020.
Hot on their heels are the central banks behind the other two largest currencies, the Federal Reserve (USD) and the European Central Bank (EUR). Yet, these two have, thus far, failed to make as much progress as their Chinese counterparts.
Let’s not forget other soon-to-be-launched digi-currencies, like the Facebook-backed Libra. This cryptocurrency aims to become THE global digital currency, offering financial services to billions of the world’s unbanked. Yet, it’s had its fair share of challenges so far. Several prominent founding members of The Libra Association have already cut ties with the project, and regulators have responded with a lot of questions.
So, who will win? Well, only time will tell, but it’s highly unlikely that a single digital solution will take the crown, in the same way that we don’t have a single dominant national or regional fiat currency. Each crypto project has its own unique set of characteristics. Some are built to scale and some are built for security. Some focus on privacy, others are all about ensuring total transparency. There’s plenty of room for competition in crypto, which will ultimately benefit the consumer and the cautious, yet astute investor.
At the beginning of last week (18.11), the total crypto market capitalisation stood at $213.98 billion. The market closed the week with a total market capitalisation of around 195.10 billion, which is a decrease of $18.88 billion (8.82%) over the week.
Our Instruments — Analysis
The DSX exchange's most interesting pairs over the last week 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 on the approach this week.
Last week, Bitcoin started a mighty decline below the $8,000 support area against the US Dollar. It didn’t stop there though as BTC price tumbled to just over $7,000 at the time of writing.
$7,000 is, itself, a key support and it’s being tested heavily. The price popped below that line, even, down to a new multi-month low of $6,776. Should the bears break through that line again, we could see a drop to the next major support at $6,500.
The first objective is to stay above that $7k and start building some bullish momentum to push over the next resistance at $7,400.
Don’t take your eyes off BTC!
Ethereum followed BTCs example last week, declining heavily after it broke the key $172 support against the US Dollar. ETH price traded below many key supports near the $170 and $165 levels. A new multi-month low was created at $138, although the price has slightly corrected since, currently sitting at $144.
The next resistance line appears to be around $155 and then $160. A breakthrough here and we could see moves over $170 this week.
On the downside, the immediate support is at the $140 level. Further bearish momentum will take ETH towards the $130 support level. The next major support level is around $125. ETH needs to steer well clear of this.
BCH is walking a dangerous line. Bitcoin’s little brother bounced off it’s $202 support line yesterday afternoon and sits at $206 at the time of writing.
Bitcoin Cash will need to stay clear of that $202 support and try to build some momentum from that earlier bounce and move upward toward the next resistance line at $220. Victory here and $230 will be on the cards.
If not, the next support line sits at $190. If we start hitting that point, the next bullish target will be $165.
Crypto News — In Case You Missed It
- €400 EU Blockchain and AI Initiative. The European Commission and European Investment Fund (EIF) has announced that is has launched a new investment scheme for blockchain and AI in Europe. The project will focus on development and growth beyond the research and proof of concept stage, which, to date, is the point that most blockchain and AI-related projects manage to get to. Western Europe is expected to spend $674 million on blockchain technology in 2019, making it the second highest-spending region in the world. Read more...
- Australian Securities Exchange CEO: blockchain will soon be the norm. The CEO of the Australian Securities Exchange believes that within the next two-seven years everyone will be using blockchain technology. He stated. “We believe we'll stop talking about this technology in a few years; it'll just be how data gets shared.” Read more on this story...
Crypto — Did You Know...
For many people, the idea of a decentralised world where everyone plays their part in the wider community is awesome. For those people, Ethereum (ETH) is a dream come true! One of the most interesting facts about Ethereum is that the project has been about the community from day one, as it was started with money sourced from crowdfunding.
Vitalik Buterin, a programmer and Bitcoin enthusiast, came up with the idea of the Ethereum Blockchain in 2013. He lacked the funds, turned to crowdfunding, and by 2015, Ethereum was created and became publicly traded.
What will you be trading this week? Tweet @DSX_uk and let us know.
Hopefully, we’ll see you soon!
The DSX team