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Bitcoin’s takeoff to $13,000 is explained by “halving”, “Facebook” and the trading war between the USA and China

Bitcoin’s takeoff to $13,000 is explained by “halving”, “Facebook” and the trading war between the USA and China

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Jim Anderson - Public Relations

The main digital currency has grown to a maximum value in 17 months. In the current year, Bitcoin is actively returning to the upstream trend. On Wednesday, June 26, the BTC rate rose to $12,940 per coin, which is the maximum value since January 2018. There are many theories about what facts and events led to the end of “crypto winter”, but recently one of them is clearly gaining popularity. It’s about halving (halvening) – an event when the miners’ remuneration is halved.

Miners compete with the computing power of their computers to quickly solve competitors to solve difficult math problems to verify transactions on the Bitcoin network. The one who wins this race and confirms the transaction first gets a reward. Now it is 12.5 BTC. However, every few years, the remuneration amount is halved to contain inflation. Experts say that by May 2020, the miners’ remuneration will be reduced to 6.25 BTC.

Other theories that explain the rapid growth of the main cryptocurrency, which became noticeably more active in April, suggest that bitcoin investors hedge the exacerbation of the US - Chinese trade war, as well as news that Facebook is developing its own cryptocurrency. Recall, Donald Trump in May introduced a 25% percent duty on Chinese products worth $200 billion.

EUR / USD: again under pressure – Commerzbank

EUR / USD: again under pressure – Commerzbank

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Jim Anderson - Public Relations

Commerzbank analysts write that EUR / USD fell again to support at 1.1176 (March low). Between this mark and 1.1100, the pair should stabilize and recover.

“The 200-week ma at 1.1348 and the 200-day ma at 1.1354 still remain in the spotlight. On a drop, the pair will find support in the 1.1175 area. It is possible that the pair will need to close the week above 1.1354 to increase the bullish momentum, which will make the target 1.1570 (1029 maximum). We regard the recent lows at 1.1110 / 06 as an intermediate pivot point.

Support in the 1.1110 / 06 area is blocking the path to the support line 2018-19 at 1.1027 and to the Fibo level of 1.0814 (78.6% of the correction).”

The pressure makes the situation profitable for most of the bullish determined traders and gives a wide way for trading systems to get a profit out of the situation.

Current situation on Forex market

Current situation on Forex market

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Jim Anderson - Public Relations

Major currency pairs today are trading within narrow ranges, as everyone is waiting for the main event of the week — the FOMC meeting. Asian forex market rose amid a risk-seeking drive caused by increased optimism regarding trade negotiations between the US and the PRC, as well as a hint from the head of the ECB Draghi to lower rates.

Demand for the yen rose amid reports that in Iraq a rocket hit the office building of a foreign oil company. The USD / JPY pair fell to 108.30, departing from the levels of 108.60. Ozzy (Australian dollar) stays around 0.6875, despite the craving for the risk and the rise in iron ore prices. The pressure on the currency is exerted by the pigeon RBA protocol.

Kiwi is in demand above the mark of 0.65 after the New Zealand data reflected the reduction of the currency account deficit, but its growth is limited in anticipation of the Fed’s decision. Euro and pound are traded in a flat in anticipation of new data and players digest yesterday’s statement by Draghi. Lyra has become the main outsider in the foreign exchange market amid news about new US sanctions.

 

Is June really good month for Bitcoin?

Is June really good month for Bitcoin?

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Erik Holm - Head of media

Bitcoin has risen by almost 71% during May. It was the best month for Bitcoin this year. Speaking from a seasonality factor, May isn’t supposed to be the best month for Bitcoin since the average annual profit for 5 years is – 1.95%. The 5-year trailing high is at 0.77%, while the low is 6.08%. Statistically speaking, the best five-year average percentage month for Bitcoin is still January, when the number was at 4.99%.

But Bitcoin bulls don’t need to be worried, and the reason why we state that is that the same factor of seasonality for July looks very strong. How strong are they? Well, the 5-year high percentage is 8.33%, which means that the Bitcoin price may rise to $ 9.208 this month.

“The hard times for bitcoin have passed”, said Dr. Zafar from Bithercash told me. His statement becomes even more prominent if you compare the current price of Bitcoin with the last years. The price of the crypto-king is now higher on a year-on-year basis and this is the first time in the past 8 months.

In the previous article on the crypto theme, we mentioned that the price has the ability to blast past the level of 10,000$ in one month. Not so long left for this to happen. However, the Relative Power Index shows that the momentum has slowed down significantly and the RSI has fallen below the critical level of 70. In order for the price to continue to move above, the RSI should adhere to the trend shown in the graph below.

Even if the RSI drops below the trend line drawn up on the graph, this is not a big issue. In fact, it only sends a strong message: the price is too oversold. This will attract more buyers.

Don’t forget that the giant of social media, Facebook also intends to reveal its own cryptocurrency this month, GlobalCoin. Users will be able to process transactions through social media channels and Facebook employees will be offered the option to get paid in this coin. Facebook creating its own cryptocurrency will open up a huge commercial value in developing countries. It will be an entirely new paradigm.

Jon Crowcraft, a professor at Cambridge School of Computer Science, described this step as “Facebook turns into Silk Road 3.0”. The question is, how big can it get? Basically, we all know that Facebook controls our data and now, with its own currency, the company becomes unstoppable.

In conclusion, we’re optimistic about Bitcoin’s value this month and we believe that the Facebook event will be a catalyst for raising the price of Bitcoin. Facebook has to make sure that it has nailed all the free ends because it’s really a double sword edge. Any failure of the company is going to leave a large crypto space.

The widest range of the best forex robots on the internet (including EAs that trade Bitcoin) is up for every trader on our web site. Make sure you have checked out all the offers we have because there is a bunch of exclusive price offers that you don’t want to miss.

 

“Bulls” go wild during trading conflict

“Bulls” go wild during trading conflict

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Erik Holm - Head of media

The fire of protectionism of Donald Trump spread to the American economy.

If in 2018 the slogan “everything that is good for America is death for everyone else” pushed the USD index upwards, then I 2019 it became clear that the USA is a non-isolated state and Donald Trump’s protectionist policy is a double-edged sword.

Deprived of support from the fiscal stimulus and the monetary restriction of the Fed, the dollar behaves quite differently than last year. The fall of stock indices and the yield of bounds, which is a typical anti-risk environment, leads to its weakening. But in 2018 it was said that trade wars allowed Greenback to intercept the status of the main asset-seeker from the yen and gold.

When investors fear about recession and easing of monetary policy are confirmed in the words of FOMC officials, EUR/USD “bears” find it hard to resist the attack of opponents. President of the Federal Reserve Bank of St. Louis James Bullard believes that the reduction in the federal funds rate may be justified in the near future. Firstly, the slowdown in GDP due to the US-China trade conflict is moving faster than the Fed expected.

Secondly, inflation and its expectations are below the goal. Thirdly, the dynamics of the yield curve suggests that the current adjustment of monetary policy is inadequately high.

Indeed, the inverse of the differential rates on US 10-years and 3-month debt obligations accurately predicted a recession in the past. At the same time, the peak of the yield of US-bound to multi-month lows and a reduction in the spread with Germany counterparts indicate an undervaluation of the euro compared to the US dollar.

According to the market statistics, there is a strong trend in the pairs with USD as a second currency. And the move of the market is faster than usual because of the factors mentioned before. Apparently, it gives automated trading systems a wide field to make a profit and so the ForexStore market is the best place to find the best forex robots to get max profit out from the move of the market.