Bitcoin Weekly: $4bn ICO Completed

We ended the prior week with Bitcoin struggling to stay above $7k. The lowest it reached was $7040 on Bitfinex. Sellers however were exhausted at that level and the rest of the week saw Bitcoin and the entire crypto market rising nearly 9%. This was a huge relief for Bitcoin bulls who were stuck in a downward channel that we had been monitoring for the last 2 weeks. Was that the Bitcoin bottom? That is anyone’s guess. Traders need to be in the business of trading their setups and trading plans. Calling tops and bottoms is what get’s portfolio destroyed. Apart from Bitcoin this week, there were several other pieces of news that were the focus.

EOS Mainnet Launch

Block.One successfully raised over $4bn for their EOS product. This has become the largest raise for another initial coin offering by far:
Top 10 ICO fundraises besides
  • Telegram Open Network — $1.7 billion
  • Dragon Coin — $320 million
  • Huobi — $300 million
  • HDac — $258 million
  • Filecoin — $257 million
  • Tezos — $232 million
  • Sirin Labs — $157.9 million
  • Bancor — $152 million
  • Bankera — $150.9 million
  • Polkadot — $142.4 million
EOS is an Ethereum competitor which supports all of the required core functionality to allow businesses and individuals to create blockchain-based applications. EOS focuses on critical pain-points of blockchain and attempts to solve the problem of speed, scalability, and flexibility that has been the achilles heel for all the major projects. Up till this Friday the company had yet to release a working production product. That was severely tested this week as developers in China found several vulnerabilities in the system ahead of their mainnet release. Regardless the mainnet was launched and the jury is still out whether this would be a catalyst to get the price moving upwards again. 

Bittrex Gets Bank Agreement 

We have spoken several times about the importance of Fiat on-ramps to the crypto world. This week another major one came online. The Seattle based exchange said they will let corporate clients in some states buy virtual tokens using dollars. They are working with New York-based Signature Bank, which will hold the dollar-denominated funds, along with other financial firms.
The lack of regulated on-ramps has been one of the major blockages for institutions to build out their crypto portfolio’s. With Coinbase announcing similar partnerships we can see the writing slowly being written on the wall. There are still several other issues with regards to custodian issues that have yet to be fully resolved. However with every bank agreement that gets done we are inching our way towards a space that could see larger investors into the space.

Binance Launches $1bn Fund

One of the companies that we believe will give Coinbase a run for their money is Binance. The crypto exchange has been making waves since it’s launch. Management has been aggressively investing their war chest to bring on world class talent and improving their tech stack. 
This week they announced a $1bn fund specifically aimed at blockchain startups. Ella Zhang, head of the exchange's incubator program Binance Labs, said the funds will be coming from Binance's own reserves as a way to contribute to the industry ecosystem. Money has slowly been pouring into the blockchain space. Most investors are so fixated on the price of Bitcoin that they are missing out on all the technology that is being created at the moment. Blockchain technology is going to revolutionize industries. Binance Labs is definitely on being a major player in the space moving forward.  

Visa Network Goes Down

On June 1st Visa sent out an announcement on Twitter that they were facing network issues in parts of Europe. As a result of the outages ATM machines in the UK were running out of money as people rushed to withdraw cash. More than 95% of debit cards in Britain run on Visa’s network. This goes to show the vulnerabilities that exist in centralized systems and goes to show that if needed these networks could essentially be shut off at the whim of governing bodies. 
The crypto twitterverse took this event and ran with it claiming that the Bitcoin network has 99.99% up-time and has never gone. While this is an isolated incident it shows the why the world needs decentralized systems where the people who hold all the value on the network (in this case their money) should have greater say in how they are run. This is a radical idea and goes against everything that has got us as a race to where we are. However with global uncertainty at the level it is, we are due for a massive shift in what we may have taken for granted.

Bitcoin Technical Analysis

On the daily chart we see can see that this week we came very close to the bottom of the sideways channel that  we are currently ranging in. We put in a strong candle reversal pattern and we are trying to accept above the 13EMA. 
On the 4 hour chart we were monitoring, we saw a clean break out of the channel. Unlike the last break we are stair stepping our way higher. The decreasing volume is a concern as we make higher highs. The open of the institution markets on Monday should provide us with clearer guidance.
Our advice with trading any market is to have 3 independent reasons to take a trade. A break out of a channel is a single one. It is important to trade setups even if you are a momentum trader. If you do so diligently the crypto markets provide plenty of opportunities. 
If you are interested in learning the basics of how to get started check out our crypto course for more details

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