- Bitcoin (BTCUSD on xStation5) plunged close to $9,000 after setting its new all-time high above $11,000
- Cryptocurrency exchanges faced hurdles to keep up with the surging demand
- NASDAQ will launch Bitcoin futures as soon as the second half of 2018
- Coinbase has been ordered to hand over a broad swath of information on its users
Wednesday was a totally crazy day on cryptocurrencies as we experienced hefty swings up and down which had to impress everybody trading digital currencies even as they are accustomed to heightened volatility. The Bitcoin price set its new all-time peak substantially above $11,000 (notice that the price varies depending on which an exchange we look), nevertheless it plunged nearby $9,000 afterward. However, a sell-off wasn’t seen just in Bitcoin as other cryptocurrencies made similar declines except Ripple (XRPUSD) which tends to be less hectic due to some difficulties to invest in this virtual currency.
The price of Bitcoin drew a candlestick featuring with long wicks which now seem to play a significant role being a support and a resistance. That said, one may assume that until the price breaks either $11,400 or $9,200 larger swings could be capped. Furthermore, it’s worth noticing that Bitcoin plummeted after reaching the target resulting from a broken ascending channel.
Litecoin saw the similar story, however in this case the price was able to test its notable support line in form of an upper boundary of a broken upward channel. Therefore, one may forecast that the price could continue rising in the nearest future while a zone placed at around $82 could be the nearest defence point for bulls.
Along with crazy volatility seen across many cryptocurrencies many exchanges faced issues to keep up with the surging demand. Having said that, we may assume that those difficulties could have contributed to massive declines on Wednesday. For one Coinbase, the leading US website for buying and selling Bitcoin, reported record-high traffic yesterday which was so high that the company was forced to suspend services for some customers. Nonetheless, when the Bitcoin price was depressed and many cryptocurrency watchers thought it’s already doomed to failure NASDAQ came to help announcing that it’s going to launch Bitcoin futures as soon as the second half of 2018. On the flip side, a NASDAQ spokesperson said that the exchange’s futures will differentiate from CBOE and CME which already announced plans to launch futures. A spokesperson also added that one issue facing Bitcoin products is the issue of what happens if there is a ’hard fork’.
Finally, it’s worth mentioning a thread related to Coinbase as the company must supply the IRS with identifying information on users who had more than $20,000 in annual transactions on its platform between 2013 and 2015 after a decision from a federal judge in San Francisco. It stemmed from the fact that the number of tax returns claiming gains from virtual currency did not line up with the emerging popularity of digital currencies like Bitcoin.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.