BTC, XRP, ETH–Week Ending Nov 4 Wrap Up

 
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Weekly Wrap Up–Nov 4

From Ethereum developer conference which didn’t yield much to the criticism of proof of work algorithm and talk of XRP use by R3 member banks, prices are yet to register strong moves. In fact, BTC is moving inside at $250 range while XRP volatility is down to 4 cents average in the last two weeks. This could be hints of accumulation in lower time frames in readiness for price expansion but before then, we shall maintain a neutral stand on BTC/USD and ETH/USD pair while remaining bullish on XRP/USD this week.

Let’s have a look at these charts:

Latest Bitcoin News and Price Update

The Debate is on: is Bitcoin damaging to the environment? Well, assuming a moderate adoption level that will see Bitcoin and other Proof-of-Work coins becoming mainstream, a rather controversial research finding projects that the world would be inhabitable by 2033 because of rising global temperatures which would by then surpass the two-degree threshold. The cause is due to the emission of green emission from energy companies adopting dirty means of energy generation to satisfy energy sucking Bitcoin mining rigs demanding huge amounts of power for transaction confirmation. This narrative that proof of work systems and Bitcoin mining is causing pollution may not be that true because mining rigs are migratory in nature only setting camps in energy cheap jurisdiction. Besides they are driving toward green energy by setting up wind, solar and hydro systems to tap power. At the same time, out of the 314 billion transactions made in 2017, 0.33 percent was BTC related and it’s pretty hard to predict adoption rates and how research would alter the efficiency of mining rigs.

Meanwhile, Morgan Stanley updated their Bitcoin Decrypted: A Brief Teach-in and Implications report revealing that Bitcoin and other cryptocurrencies are an institutional asset class. The initial version was updated in Dec 2017 adding to the other 15 similar reports the banking giant has done. According to the Morgan Stanley Report, Bitcoin is no longer a store of value—and a medium of exchange, as institutions and traders from all over the world are demanding for BTC and Cryptocurrencies.

BTC/USD Price Analysis

Two things are clear: BTC/USD price movements are tight and bears are still in control. And it’s not hard to see why. For the last three months not only have BTC/USD pair been stuck in a larger $1500 range but price movements have been condensed further in the last three weeks or so. Days after Oct 15 spike above $7,200 triggered by USDT fiasco, volatility tapered and basically became a stable coin of some sort. In the last two weeks, BTC/USD has been stuck in a $250—on average trade range—and interestingly, this is printing near the apex of the descending triangle. Now, unless otherwise there are breakouts above $7,200 igniting bulls or drops below $5,800-$6,000 dashing BTC bulls, our last BTC/USD price analysis is valid. What we would recommend now is to hold off trading considering the tight trade range and the “last section” effect as prices oscillate near the apex of the descending triangle. A breakout is imminent.

Latest Ethereum News and Price Update

Everything else constant, Ethereum creators want to create this world’s supercomputer where the platform’s virtual machine underpins all activities. It is where the smart contracts dApps work from and for this reason, JP Morgan and Chase, one of the world’s largest banks, see potential in Ethereum endorsing the platform as a result.

The bank said they are fans but they are simultaneously working on developing an enterprise version of Ethereum called Quorum. While talking to Australian Financial Review, Umar Farooq the head of the bank’s Blockchain initiative said their immediate task is to tokenize gold bars in their custody. He also went on to acknowledge the importance of Ethereum ecosystem.

It must be known that Jamie Dimon, the CEO of JP Morgan Chase is not a big fan of cryptocurrencies especially Bitcoin saying in a recent Axios Conference in LA that he didn’t want to be the spokesperson against Bitcoin but he “didn’t give a f*ck” about the coin at that point. This echoes well with most government officials who appear to back blockchain but thrash solutions as cryptocurrencies built on top of it.

As Ethereum received kind words from the bank, the Ethereum developer conference, Devcon4 ended with a high as Vitalik said they are ready to roll out solutions towards the creation of a world’s supercomputer in Serenity.

Serenity is simply a merger of all projects Ethereum developers have been working on and according to Vitalik, Ethereum will no doubt soar as it worked towards improving efficiency, flexibility, and sustainability as it works towards improving scalability with Ethereum 2.0.

ETH/USD Price Analysis

Thing is, Like BTC/USD, ETH/USD price movement is tight and virtually unmoved in the last week. At it was, prices are oscillating in a $30 range with clear support at $160 and resistance at $250. Unless there are gains above $250, we shall retain a bearish outlook more so if prices collapse below $200 and Sep-Oct lows at $190 or thereabouts. Moving on, week ending Sep 9 bar is of importance and influences this bar. Since it is bearish and bulls have had a tough time absorbing the loss of that week, effort versus result analysis put bears in control. But before execution of shorts, aggressive type of traders should first wait for solid losses below $190. Thereafter, stops would be at $210 and first targets would at $150 and later $75.

Latest Ripple News and Price Update

It’s odd that XRP is not yet available at CoinBase Pro. Coins with low market cap as ZRX, ETC, and BAT are finding exposure to more than 3 million US customers in the US alone but not XRP.

RippleLab’s product XRP is an on-demand coin and available at other exchanges all over the US but questions around its decentralization and legal concerns—with most skeptics classifying the coin as a security, though the SEC is yet to comment on the matter.

Regardless, usage is picking up and sooner or later considering plans by SBI Group to push for XRP usage by R3 members is a huge boost.

XRP/USD Price Analysis

Like most coins under review, XRP/USD is stable and the average of the last two weeks average 4 cents. But, even in the midst of this inactivity, we retain a bullish outlook for this pair expecting prices to soar above 55 cents triggering bulls as prices rally towards our first bull target at 80 cents. This is so because XRP/USD is still trending inside week ending Oct 21 which was marked by high market participation. However, dips below 35 cents-40 cents support cancels this bullish outlook. Therefore, from the way prices are aligned, we suggest low volume buys in lower time frames with fitting stops at 40 cents.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.