Bitcoin Weekly: Is time to HODL or FOLD?

This week was a true test for crypto HODLer's. The term is an internet meme was started back in 2013. Bitcoin was crashing and this one person decided to hold their position. If you are interested in reading the post originating the meme, find it below.

Fast forward to this week and Bitcoin came close to visiting the lows of February 2018. This week the resolve of HODLer’s was definitely tested. Based on our review last week we mentioned the key $6k level that the bulls didn’t want to see breached. We came awfully close to breaching that level but found support near the region. However the bounce didn’t come with the volume that was needed. Which reinforces the case for the bears at the present time being. If volume doesn’t return and we stair step our way higher, it may open some interesting shorting possibilities.
 
At the moment we seem to have deviated considerably from the 13EMA. I would be paying very close attention to price as it gets closer to that point. Looking at lower time frames at that point could have short trade setups that may develop. It will all come down the volume push with the break of that line when we would even begin considering bullish trades at the moment. 
 
 

SEC doesn’t deem Ether a security

Over the last few months the SEC has been clamping down on shady ICO’s and considering the possibility of deeming Ethereum a security. It was a hotly debated topic in the community. Given that it would have a catastrophic impact on the entire industry.
 
The SEC’s Director of Coporate Finance, William Hinman, however announced on Thursday that the SEC would not deem Ether a security. That was a huge sigh of relief for the industry as a whole and the market did see some lift on the breaking of that news. However it wasn’t enough to get the major volume that is severely needed at the moment. 
 
Below is an excerpt from the main part of the announcement that was made. The full speech can be found at: https://www.sec.gov/news/speech/speech-hinman-061418
 
“Strictly speaking the token, the coin, whatever the digital information packet is being called all by itself, we don’t think is a security. Just as oranges in the Howey case were not securities. Essential to determining whether a security is being offered, however, is how it’s being sold and a reasonable expectation of purchasers. When someone buys a housing unit to live in it’s probably not a security but under certain circumstances, the same asset could be offered and sold in a way that could cause investors to have a reasonable expectation of profits based on the efforts of others. If the housing unit is offered with a management contract or other services where purchases are encouraged to invest rather than reside, it could be a security. Case law tells us that,” Hinman explained.
 

Coinbase Index Fund is Open For Investment

Another week and another major announcement by Coinbase. 
 
Large investors have wanted a simple on-ramp to get exposure to the crypto asset class. This week Coinbase is allowing US based investors the ability to do that. Starting with a a minimum investment of $250,000 up to $20m. The fund gives investors exposures to all assets listed on Coinbase weighted by market capitalization. 
 
The exchange also introduced Ethereum Classic being added to the exchange which provides greater diversification for investors. Overall this is positive news for the sector as a whole. What the market is severely lacking right now is liquidity from retail investors. We would like to see the minimum investment amount come down drastically. That could be a catalyst to get the average investors to get crypto exposure without all the hassles. 
 

 
Overall, the market seems to be at a standstill right now. For the bulls they need volume to show up in the next couple of weeks. This could provide the needed boost to reverse this current trend. However if we do not see it come in and price continues to climb, that is what the bears would ideally want to see. In both cases sharp traders will be able to take advantage of a move in whichever direction the market wants to take.
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