BTC, XRP, ETH–Week Ending Oct 6 Wrap Up
All things considered, the Bitcoin and altcoin market might end up on a high by the end of the year. Fundamentals that will shape Bitcoin stem from approval/disapproval of Bitcoin ETFs while a favorable ruling from the US SEC will see XRP moon sling. On the other hand, successful implementation of scaling solutions and depleting of ICOs ETH holding will firm up ETH prices.
Latest Bitcoin News and Price Update
It took five days for market-moving news to trickle in. And as it has been the case, the community often react to news of regulation and to that end; the US Securities and Exchange Commission (SEC) did file amendments to the previous rule change for the listing and trading of GraniteShares Bitcoin ETF, GraniteShares Short Bitcoin ETF shares, Direxion Daily Bitcoin Shares, ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF.
These Bitcoin ETF proposals were filed by the BZX exchange back in January but the SEC delayed and later disapproved its creation. Nevertheless, the next day the SEC said it would “review its action pursuant to delegated authority” which led to this week’s amendments. Now, according to the latest SEC order, interested parties should file their support or opposition statement for the creation of the Bitcoin ETF by October 26, 2018.
Bitcoin Price Analysis
Back to price action and Bitcoin price is stable. It’s up roughly one percent in the last week but still trading inside week ending Sep 23 candlestick. While the last two candlesticks are characterized by long lower wicks hinting of underlying bull momentum, bulls are yet to muster enough momentum to break above key resistance line triggering bulls as a result.
In our case, our resistance zone is between $6,800 and $7,200. Since prices are oscillating inside a wedge with clear supports at $5,800-$6,000, close above $7,200 drives BTC prices above the key resistance trend line which has been a strong liquidator in the last eight months.
As far as price is concerned, our last Bitcoin trade plan is valid. Therefore we recommend taking a neutral position until after there are high volume breakouts in either direction—above $7,200 or below $5,800.
Latest Ethereum News and Price Update
In the spirit of decentralization, Vitalik—the Non-giver of ETH, plan to detach himself from Ethereum. In a tweet, he said the network can “absolutely survive” and while it will be interesting to see how Ethereum and ETH will react following his departure, no timeline has been given. Of course, he will still be part of Ethereum and the foundation want to somehow ensure the network in case something happens to him.
I think ethereum can absolutely survive me spontaneously combusting tomorrow at this point.
— Vitalik Non-giver of Ether (@VitalikButerin) October 5, 2018
In the meantime, Prysmatic Labs, a team dedicated to Ethereum scalability released the first version of Shasper called Prysm. The team objective is to set the standard for the development of ETH 2.0 where it acts as a platform for production releases written in Google’s Go programming language. Prysm, Ver 0.0.0 is made up of a simulator for Beacon blocks creation, a Beacon Chain and a validator demo allowing Validator clients to connect to the Beacon node via Remote Procedure Call [RPC].
Our first release including a local demo of Ethereum 2.0 so far, is live! https://t.co/4clpes1Dky
Come check out the following:
💎 Spin up a beacon chain node from a genesis config
💎 Connect a validator to the beacon node
💎 Validator gets shuffled into a shard and slot
— Prysmatic Labs (@prylabs) October 3, 2018
Apart from Shasper, Constantinople test net hard fork was put off for five more days to allow for the implementation of CREATE 2 update that protects the EVM from DDOS attacks.
Via community decision, we’ve delayed the #Ethereum Ropsten testnet Constantinople hard fork by 1 epoch to block #4230000 (+5 days) to allow clients to implement, test and release an update to CREATE2, countering a recently found EVM DoS attack vector.https://t.co/q0bUyj3GfR
— Péter Szilágyi (@peter_szilagyi) October 4, 2018
Ethereum Price Analysis
Price wise and there appears to be the rejection of lower lows. While we can’t link this to news of Vitalik’s detachment, prices are up and moving away from $200 support level. Though there is optimism as far as ETH price is concerned, upsides are restricted and trading inside week ending Sep 9 bear candlestick.
If anything, the bar anchors our ETH price analysis and until after there are movements above $300, we shall take a neutral stand as stated previously. This conclusion is based on an effort versus result position and the damping effect of a bearish engulfing pattern.
Latest XRP News and Price Update
Critics of XRP say the network is pretty decentralized but beyond that there is utility. According to Michael Didiuk, a former member of the US SEC, XRP is not a security but a currency. Referring to classifying conditions set by the Supreme court Howey Test, XRP can operate with or without Ripple the company.
Michael Didiuk, 8 year-long former US SEC employee pic.twitter.com/7P3dSFdzg1
— Steven Diep (@DiepSanh) October 4, 2018
Because of this, the coin doesn’t need a third party promoter making XRP non-compliant with the Howey Test. Comments as such from a former SEC member is good news for the expectant XRP community fueling speculation that the SEC might deliver a favorable decision on whether XRP is a security or not.
Under the Howey Test, a transaction is an investment contract if:
It is an investment of money
There is an expectation of profits from the investment
The investment of money is in a common enterprise
Any profit comes from the efforts of a promoter or third party
— Crypto Dave (@CryptoDave13) October 6, 2018
XRP Price Analysis
Nonetheless, speculations didn’t support price and XRP is down five percent in the last week trading at 50 cents, 30 cents from the week ending Sept 23 peaks. Despite this, we are upbeat about XRP expecting reversals in days to come.
From our previous XRP analysis, we recommend buying on dips. To that end, pasting a Fibonacci retracement line between Sep high lows mean ideal buy zone is between 40 cents and 55 cents. This is where prices are trending at and traders need to zoom out to the 4HR chart and buy on every bounce back from relevant support line. Safe stops remain at 40 cents with first targets at 80 cents and later $1.
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.