Bitcoin Falls Below $10,000: Monex Crypto Market Weekly – TradeStation





This post is a translation of the weekly cryptocurrency analysis by Crypto Lab, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group. Due to the difference in time zone, we’re able to share Friday’s report today.

Summary

  • Investor sentiment has soured recently toward Bitcoin (BTC). BTC dropped more than 5% on the week and is now trading around $9,400.
  • The outlook for next week could be negative with risk of a break below $9,400 if buyers don’t step in. If that level doesn’t hold, the next support area is the bottom of the range at $9,000. Short-term resistance is at $10,000, also the midpoint of the broader range.

Market Trends This Week

BTC attempted to break resistance around $10,000 early in the week but met with heavy selling. It’s still range bound and clinging to the bottom of its support zone. The recent drop sent prices briefly under $9,400 before recovering back above support. BTC has lacked direction in the last few weeks and fluctuated in a wide range. Losses this week have mounted to more than 5 percent. Rumors have swirled that BTC’s recent drop results from CME futures expiration or selling pressure on Tether, but the specific factors are not clear.

This Week’s Topics

  • A problem with Amazon.com’s (AMZN) AWS cloud service disrupts some cryptocurrency exchanges. (8/23)
  • New version of IoT integrated software “Gravio3” with AI and original blockchain is released. (8/23)
  • NEC, IDB Lab and NGO Bitcoin Argentina sign a memorandum on development of a digital ID system using blockchain technology. (8/23)
  • Bank of England Governor Mark Carney advocates a virtual currency to replace the U.S. dollar as a global reserve currency. (8/23)
  • Facebook’s (FB) Libra cryptocurrency is reportedly losing support. (8/24)
  • Venezuela’s biggest department store, Traki, plans to install Pundi X blockchain enabled cash registers. (8/24)
  • Representative Maxine Waters (D-CA), head of the U.S. House Financial Services Committee, says she still has doubts about FB’s Project Libra after meeting Swiss regulators. (8/26)
  • Binance launches virtual-currency lending with annual interest of up to 15 percent. (8/27)
  • Ethereum (ETH) blockchain capacity is almost full, co-developers warn. (8/27)
  • A blockchain-powered electric-vehicle (EV) system is unveiled on Japan’s northern Hokkaido island. (8/27)
  • Swiss Regulatory Authority strengthens anti-money laundering (AML) requirements and grants “bank and securities licenses” to two blockchain companies. (8/28)
  • FB hires the former head of policy at Coinbase as a lobbyist for Libra. (8/28)
  • Japanese online financial-services company GMO launches a deposit service for its GMO Coin crypto subsidiary. (8/28)
  • Forbes reports that the People Bank of China will issue a state-backed cryptocurrency. Firms including Alibaba (BABA) will participate. (8/28)
  • BTC breaks below $10,000. (8/28)
  • Launch of pilot version of Eid, Tokyo Otaku Mode, bitFlyer Blockchain and block platform-based translation platform “Tokyo Honyaku Quest” (8/29)
  • The Telegram messaging app plans to launch the Gram cryptocurrency in October. (8/29)
READ  Indian Supreme Court Orders RBI to Answer Crypto Exchanges, New Date Set

Next Week’s Market Forecast

The important $9,400 level looks vulnerable unless there is a shift in investor sentiment. The bulls are struggling to support BTC and technical traders are watching these levels closely. A break of $9,400 opens the door to a test of $9,000 and even possibly $8,000. A certain amount of support should be expected, due in part to the fact that nothing has materially changed in the industry and the overall outlook remains positive.

The next support level we’re watching is $9,000. The nearest resistance zone is around $10,000.

Next Week’s Topics

  • 9/2: Aeternity (AE) ends migration to the Mainnet following a hardfork.
  • 9/3-6: Japan’s Financial Services Agency (FSA) to hold the FIN/SUM 2019 event in Tokyo.
  • 9/4-5: Upbit Developer Conference 2019 in Incheon.
  • 9/5: Innovation Summit Asia 2019 in Hong Kong.
  • 9/6-8: ETHBOSTON, an Ethereum hackathon, in Boston.
  • 9/7: First Crypto Fest event in Cape Town. (9/7)

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Andrew Rocco joined the TradeStation team in 2019. Prior to joining the team, he was a portfolio manager for William O’Neil & CO. He also acted as a senior education coach for MarketSmith research platform where he provided individual training to subscribers to refine their research routines and better reach their investment goals. Mr. Rocco’s years of investment experience are complemented by a B.A. in economics from the University of Miami.



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