Cryptosquawk – The latest news from the blockchain world

Weiss downgrades Litecoin and Cardano, promotes Monero

The rating agency Weiss Ratings downgraded Litecoin and Cardano, and upgraded Monero’s rating. The ratings of the first two cryptocurrencies have been lowered from “C+” to “C”. The risk / return level of Litecoin remained unchanged at “D”, both aspects classified as “weak”, while its degree of technology / adoption is “B+”, “equo” the first and “excellent” the second, the rating agency has announced. Cardano received a “D-” in risk / return, both classified as “weak”, but a “B+” in technology / adoption, classified respectively “excellent” and “good”.
Before the downgrade, Litecoin and Cardano were respectively in fourth and fifth place in the ranking, with Bitcoin and Ethereum leading with their “B” level, followed by four other cryptocurrencies with a “C+” rating. One of these is Monero, after the upgrade from “C” to “C+”, whose risk and return were classified as “weak” and classified with a “D+”. The degree of technology and adoption was found to be “B”, with both being assessed as “good”.

Line and Huobi launch cryptocurrency exchanges in Japan and Argentina

Japan and Argentina welcome two new exchanges developed by big players. In Japan, the giant chat app Line officially launched its new Bitmax platform, managed by the Tokyo LVC subsidiary. The company obtained operating authorization from the Financial Services Agency earlier this month.According to a Nikkei report, Bitmax is currently available only for Android users, although an iOS version is in preparation. The platform will initially focus on five cryptocurrencies: bitcoin, bitcoin cash, ethereum, litecoin and Ripple. However, the Line link token is not yet available on the platform, probably for regulatory reasons. Line’s goal is to link its Bitmax offer to its other services and has already added a Bitmax card to the wallet menu in its app, which is believed to have around 55 million users in Japan.Line also announced that Japanese users will be able to make deposits from their Bitmax accounts to their Line Pay (e-pay) accounts. The company is a subsidiary of the South Korean technology giant Naver.Meanwhile, the Huobi global exchange has announced that it has opened a trading platform in Argentina. Huobi will also introduce a fiat “gateway” towards the middle of October this year for trading Argentine pesos. The company stated that its gateway will allow users to “buy cryptocurrencies via credit card, bank transfer and […] digital payment providers like Mercadopago”.Carlos Banfi, CEO of Huobi Argentina, said: “Argentina is the most promising market in South America for blockchain development. There is already a general consensus to get rid of dependence on local currency and banks. “The company also confirmed that it had held talks with” senior Argentine financial officials “, in which the parties” discussed the role the blockchain could play in development economic development of the country “.Banfi added that “this is a great opportunity to shift the balance towards the blockchain and the adoption of cryptocurrencies in Argentina”. Their rival, OKGroup, the owner of the OKEx exchange, entered this market with a fiat-to-crypto OKCoin exchange in November 2018. However, as new players are entering the market, many companies have decided to abandon the business lately.

Bitcoin Price Dips as Bear Cross Looms

Bitcoin fell last week, bolstering the bearish setup on the 4-hour daily charts. A UTC close below a key support at $9,450 would confirm a downside break of a three-month-long contracting triangle and expose the 200-day moving average support lined up close to $8,100. A rise above $10,458 would negate the bearish trend, while a UTC close above $10,958 would confirm a bullish triangle breakout.The 50- and 100-day moving averages are about to produce a bearish crossover, a lagging indicator known to trap sellers on the wrong side of the market. Bitcoin slipped to a multi-day lows last week. An expected drop, as Bitcoin was in downtrend following last week’s failed breakout. Volatility also fell to multi-month lows, indicating scope for an explosive price move. Prices have bounced back a little, but the bearish mood still remains.The spread between the 50- and 100-day MAs has narrowed sharply and the two averages will likely soon produce a bearish cross, a phenomenon which occurs when a short-term MA falls below a long-term MA. If confirmed, the event would mark the first cross since September 16, 2018.The bearish cross is considered as a warning of an impending price crash. It is, however, based on historical data and tend to lag price. Hence, this indicator has limited predictive powers at best and often end up trapping sellers on the wrong side of the market.For instance, the 50-day MA fell below the 100-day MA on August 29, 2016, when Bitcoin was trading near $570. The cryptocurrency remained flatlined in the next couple of days before rising above $600 on September 4. More importantly, the $570 price seen on August 29 was never put to test throughout the fierce rise to a record high of $20,000 touched in December 2017.Observers may argue that last September’s bearish cross was followed by a sharp sell-off to levels below $5,000 in November. However, at that time, the cryptocurrency found itself in a bear market. Also, prices remained sidelined above $6,000 for at least six weeks following the confirmation of the bear cross, before dropping in November.Currently, Bitcoin is in a bull market, having charted higher lows and higher highs in the second quarter of the year. Hence, the latest bear cross may not be a cause for worry for the bulls – especially considering the crypto is still stuck in a three-month-long narrowing of its price range.