Cryptos weekly market analysis
We report the crypto market analysis on the last trading sessions made by Aayush Jindal (Cryptonews.com).
After tagging the $9,400 area, bitcoin started an upside correction above 9,550. It even recovered above 9,650 and it is currently consolidating.
On the upside: to start a strong upward trend, the price must surpass the 9,850 resistance area. The next major resistance is near 10,050, above which the bulls are likely to aim 10,550.
On the downside: the price is likely to remain well above the 9,550 level. If it fails to stay, the bears are likely to aim a test of 9,200.
Ethereum is slowly recovering above the $255 and $260 levels.
On the upside: it must gain strength above 265 to resume its uptrend. A successful close above 265 could lead the price back towards the 285 resistance area in the near term.
On the downside: If it starts another decline, it could struggle to stay above 255. The main support is near the 250 level, below which there is a risk of a sharp decline towards 230.
Bitcoin cash price extended its decline below the $360 and $355 levels. It tested the 350 support and it is currently consolidating above 370. To continue higher, the price must clear 385 and then gain momentum above the 400 resistance area. On the downside, the main support is still 350.
Litecoin fell below the $70.2 support area before the bulls appeared near 66.5. It recovered above 70.0, but it is struggling to rise above the 72.5 resistance. The key hurdle on the upside is seen near 75.5.
XRP traded close to the key $0.262 support area and it is currently recovering. The price surpassed 0.270 but there are many resistances on the upside near 0.282 and 0.285. Therefore, the price might consolidate in the short term before the next move either above 0.285 or towards 0.232.
In the past three sessions, a few small-cap altcoins recovered more than +5.0%, including ALGO, AION, DX, REN, ATOM, LEND, LUNA, BCN, MATIC, SNX, ICX, DCR and MOF. Conversely, MANA, ABBC, SC, and SNT fell more than 5.0%.
The cryptomarket capitalization rises by + 44.1% in 2019
The overall capitalization of the cryptocurrency market hit new records, increasing by +44.1% and earning $ 60 billion since the beginning of 2019 and closing the year at $ 180 billion, according to the data contained in the According to the CoinGecko Annual Report for 2019. The financial investments by large MNCs such as Facebook, JPMorgan, Microsoft, Shopify, Tesla, Telegram, IBM, but also governments, such as China, have contributed decisively to the strong development of the sector.
More specifically, the volume of trade in the market based on blockchain technology has increased by +600.0% in the last year and continues to grow. With a market capitalization in excess of $ 150 billion, it is not surprising that Bitcoin was the best performer of the year. After its launch in 2009, it has become the most popular cryptocurrency in the world and has dominated the market since then, while in second place we find Ethereum, a currency born in 2015 and with a market capitalization of $ 17.50 billion.
Japan’s cryptocurrency ready to enter the market
According to recent reports, China is currently in the implementation phase of its digital yuan, and is the first major world economy to exploit blockchain principles to create a state cryptocurrency. In addition, Libra, the electronic currency designed by Facebook in partnership with giants of the financial and digital world, should be launched in the spring. Both coins are based on blockchain technology, but in its centralized form: it means that in these two cases – and in all the others in which a state or private company is involved – the constitutive factor of bitcoins, whose blockchain it is public and therefore cannot be controlled by any single entity.
Japan could be another newcomer. According to Reuters, the country could give birth to a digital yen in two or three years, or even earlier – as Kozo Yamamoto of the Liberal Democratic Party has said that “first we do and the better. ” The project for a Japanese state cryptocurrency is still only a proposal, but it is highly indicative of how the attention towards coins based on private blockchains (whose access is therefore strictly controlled) is spreading.
What we are witnessing is a sort of domino effect. Just as the bogeyman Libra – which despite being a private currency would further increase the weight of the dollar, which constitutes the majority of the basket used as a guarantee – has contributed greatly to accelerating Chinese projects, in the same way the fear of an advance of the renminbi has prompted Tokyo to seriously consider issuing its own digital currency. “Today we live in a stable world led by the dollar,” explained another member of the Japanese ruling party, Akira Amari. “How should we respond if this stability were to fail and if China’s move kicked off a battle for monetary supremacy?”
Japan is thus only the last of a long list of countries that have issued or are about to do so. Venezuela has long since launched its Petro in an attempt to circumvent sanctions and (try to) fight the hyperinflation that scourges the country. North Korea has long been in love with cryptocurrencies, always as a useful tool to scoff sanctions, and is working to give life to its own crypto. The same could also be done by other countries such as Russia and Iran in the short term.
The big absentee is the European Union, although it is finally giving some signs of life. A new draft, as reported by Reuters, invites the ECB to carefully study the possibility of giving life to its digital currency: “The ECB and the other central banks of the the European Union should explore the opportunities and challenges of enacting a digital currency and start considering the first steps to be taken,” the draft says.
If indeed all these government-led projects, starting from the digital yuan, materialized, then the plans of Satoshi Nakamoto (the anonymous inventor of bitcoins) would definitely turn against him. His goal was to subvert the financial world and create an economic system capable of circumventing central bank control, through de-nationalized currencies. Now, central banks are ready to take advantage of his technology to make sure they keep their monetary sovereignty intact.