Summary:
- A technical buying signal on Bitcoin
- Coinbase might face a suit over Bitcoin Cash listing
- Digital currencies might become a remedy for savers in a NIRP world
Is is convincing enough?
A buying signal might be spotted by some technicians on Bitcoin. Source: Bloomberg
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Open account Try demo Download mobile app Download mobile appThe most famous cryptocurrency saw a decent rebound over the past week confirming a notion, shared by some crypto traders, that digital currencies tend to be treated as safe haven assets, thereby performing quite well when market jitters arise. Let us note that Bitcoin has risen more than 15% since the beginning of August and it could be poised to continue its rally. Such a rosy backdrop might be painted by some technicians who focus on the GTI VERA convergence Divergence Indicator. This tool, which aims to detect positive and negative trends, has recently generated a bullish signal for Bitcoin, the first one since June. Moreover, according to Mike McGlone, a Bloomberg Intelligence analyst, Bitcoin ought to keep on performing fairly well being a beneficiary of growing demand for its store-of-value feature”. He also sees the case for the higher Bitcoin price owing to falling bond yields as well as rising market volatility.
Troubles ahead
Coinbase, a digital currency exchange headquartered in San Francisco, may soon face a lawsuit from clients who purchased Bitcoin Cash right after the unsuccessful listing of this cryptocurrency during the 2017 bull market. According to US District Judge Vince Chhabaria of the Northern District of California the company might have “breached its duty to maintain a functional market.” Let us remind that Coinbase halted its BCH trading only after three minutes from the launch. Moreover, those who had already bought BCH also accused Coinbase of stripping them of a possibility to sell BCH at artificially high prices.
Bitcoin has performed well during recent days, however, bulls have to deal with the 23.6% retracement once they want to push toward $13300. Source: xStation5
Crypto remedy
Recently, UBS has informed that more customers will be charged to hold money in its banks as the Swiss bank attempts to pass negative rates on to its clients and ease pressure on its net interest margin. Although it could be a hard task (households, as opposed to corporations, are much less likely to park their savings at banks offering negative-yielding deposits) it shows a growing need to find other ways to store value of money. One of them could be cryptocurrencies where negative rates do not apply. It’s worth referring to a Fundstrat co-founder Tom Lee’s opinion given in an interview with Fox News that “Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.” Taking into account that more and more debt yields negative rates one may suppose that cryptocurrencies might keep investors’ interest going forward.
Ripple keeps trading close to its bullish trend line. The more notable resistance might be localized nearby $0.365. Source: xStation5
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