The Chinese government could roll out fresh cryptocurrency regulation in the coming months permitting licensed brokers to operate, based on recent information from Xinhua.
The state-owned news publication recently revealed that the government is mostly concerned with stamping out illegal activity involving bitcoin and other cryptos. Government authorities could be planning to regulate the market by creating a licensing program with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.
The Case for AML
The need for KYC/AML protocols has long been raised by cryptocurrency proponents, especially in reference to initial coin offerings (ICOs). In response, the blockchain community has come together to create the Simple Agreement for Future Tokens (SAFT). The SAFT is both an instrument and open-source framework for token sales that vets accredited investors.
SAFT was officially created by Protocol Labs in close collaboration with AngelList and Cooley.
China’s Stance Looms Large for Cryptocurrency Market
Although digital assets have recovered from the China-induced flash crash of September, favorable regulations on the mainland could mean big business for bitcoin exchanges. Prior to the ban on ICOs and bitcoin brokers, Chinese investors were responsible for a quarter of all BTC trades.
According to Xinhua, China is likely to pursue a licensing program similar to Japan, a country that recently approved 11 cryptocurrency exchanges. CnLedger, a leading source of cryptocurrency news in China, recently had this to say:
“Xinhua News, official press agency of CN: Virtual currencies have become the top choices of underground economies. We shall adopt ‘0-tolerance policies’ towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions.”
Is China’s cryptocurrency ban temporary? It certainly looks that way. Regulators must already know that the ban hasn’t stopped mainland investors from buying cryptocurrencies next door in Hong Kong or Singapore. A saner approach to an all-out blanket ban is a tighter regulatory framework that will stamp out money laundering and other underground activities.
The price is going to move above the cloud and break 4400.00 resistance level. Probably if the market can do this, we’ll see further upward movement to 5000.00 level. It’s a new trading opportunity and we can place pending orders for buy above 4400.00 level in order to catch this possible movement. Stop orders must be placed below the local low at 4100.00 level. The main profit target should be at 4900.00 level. This is a short term trade and it will be better to close the profit at the strong resistance level. As for long term trading, we should leave the part of long positions which were opened on lower levels. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.
The steady uptrend in the most valuable coin is defining trading in the segment yet again. BTC cleared the $4400 resistance level today in early trading as the coin continued its march off the crash lows near $3000, nearly completing a 50% rally. With the Segwit2x hard fork rumors being sidelined, a test of the all-time high near $5000 seems more and more likely. Before that, the $4675 resistance is the last major hurdle, while support is found near $4150, $4000, and $3800.
BTC/USD, 4-Hour Chart Analysis
The rest of the market is generally very calm, with only IOTA and NEO showing increased trading activity. NEO is the positive outlier, being up by more than 8% compared to yesterday’s close while IOTA is in a short-term correction after its strong showing last week. Dash and Monero are still drifting lower, lagging the broader market, while Ethereum and Ripple are hovering around $300 and $0.20 respectively in the quiet environment. The overall long-term picture is consistent with a bullish trend, as correlations are low and volatility is muted. Let’s take a look at the short-term prospects of the majors.
Ethereum is among the weaker coins short-term, as it continues to struggle with the $300 level, although the $285 support is not in any danger for now. The MACD is in neutral territory thanks to the sideways drift, and ETH is still likely to test the $330 level soon, as the long-term picture remains constructive. Further resistance is ahead at $380, while support is at $250 and $235.
LTC/USD, 4-Hour Chart Analysis
Litecoin is still stuck below the $56 level and the long-term rising trend channel, as it failed to regain its relative strength after the crash. We still expect choppy price action in the coin before a sustained rally and short-term traders should wait with opening new positions here. Above $56, further resistance is found near the $64 level, while support is around $51 and $44.
DASH/USD, 4-Hour Chart Analysis
Dash remains inside the consolidation pattern that has been driving the coin lower since the strong post-crash rally. The currency, which is still one of the strongest majors regarding the distance from the all-time high, is getting short-term oversold, but a test of the $300 level is still possible before a meaningful rally. Below that further support is found near $265 while resistance is ahead at $360.
XRP/USD, 4-Hour Chart Analysis
XRP is in a short-term consolidation pattern near the $0.20 level, as the coin settled down after its rally. Ripple is still likely to test the key zone near the $0.22 level in the coming days, given the bullish long-term picture, and the broad recovery in the segment. Support levels are still found at $0.18, $0.16, and $0.14, with further resistance ahead at $0.26 and $0.30.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic has been trading with very low volatility lately after bouncing off the key $13.50 elvel during the weekend. The coin still faces strong overhead resistance, even after breaking out of both the short- and long-term downtrends, but the long-term prospects of ETC are much better now. That said, short-term traders should still wait for a break above primary resistance. Support is found near $11 and $9, while further resistance is ahead at $16 and $18.
XMR/USD, 4-Hour Chart Analysis
Monero is still trading inside the correction pattern that has dominated the market since the end of August and the coin remains relatively weak compared to the other majors. Despite the short-term weakness, XMR is still one of the strongest currencies concerning the long-term picture and a break-out above $100 would open up the way for a re-test of $125 and the all-time high near $150, with key support at $80 and $68.
NEO/USDT, 4-Hour Chart Analysis
NEO surged to get close the crucial $40 level today, after the short-term correction that carried the coin back near $25 during the weekend. The currency remains one of the most active majors it has been since the China ICO-ban, and it is likely to experience volatility as investors continue to revalue the coin. Support is now at $34, $30, and $25 while primary resistance is around the $40 level.
IOTA/USD, 4-Hour Chart Analysis
IOTA dipped back below the $0.60 level as it entered a short-term correction after a period of relative strength. The coin is still in a clear uptrend, it remains above the prior declining patterns. The currency tested the $0.64 resistance during the weekend, and we still expect a rally above that level in the coming week. Support is still found in the $0.45-$0.48 zone, while above $0.64, further resistance is ahead near $0.75.
Featured image from Shutterstock
Important: Never invest money you can’t afford to lose. Always do your own research and due diligence before placing a trade.
The concept of money has been evolving across time. Goods, gold, silver, banknotes, electronic money have all played the role of money. The birth of blockchain technology gave rise to an innovative, decentralised peer to peer payment system called Bitcoin. This gives a glimpse of a futuristic cashless, digital economy. With all the excitement and boom of Bitcoin, the very essence of Bitcoin is still obscure. Is it money? Or a commodity? Or nothing at all? In this research, an interpretive and inductive method is adopted in analysing the primary and secondary sources of Islamic law to identify the principles of defining money in Islamic law. The various scholarly opinions are considered in respect to Bitcoin. Although the opinion that Bitcoin is not Māl (asset) at all has some weight, there seems to be a difference between Bitcoin and other derivatives. This paper reasons that Bitcoin does seem to be Māl (wealth) with Taqawwum (legal value), however, it does not possess Thamaniyyah (currency attributes). Furthermore, the associated risks with Bitcoin, the Maqāṣid al-Sharia framework are considered to determine whether Bitcoin fulfils the Islamic ideals of an Islamic economic function. Bitcoin falls short of fulfilling the principles of the preservation of wealth in Shariah. Bitcoin is further assessed in terms of the principles of Islamic moral economy. A key theme and objective of Islamic moral economy is embedded financing and investments linked to the real economy. Bitcoin and cryptocurrency investments do not serve the real economy and do not promote real growth of an economy. Thus, it was concluded that Bitcoin is not ideal as a long-term investment and neither should the Islamic finance industry consider its use in exchange unless there is a specific need to until a regulated and transparent framework is established. At this current time, Bitcoins are just another investment which are for individual profit maximisation. Nevertheless, returns on Bitcoin investment would be lawful and Shariah compliant according to this understanding. However, the global Islamic finance bodies and expert Shariah scholars are in the best position to offer the most accurate advice.
The major cryptocurrencies followed through the initial post-crash healing process with a healthy rally, skipping the re-test that usually follows such a sharp move lower. The segment even powered through another ICO ban, this time in South Korea, which only caused a brief decline and the strongest coins are back at or near their rally highs.
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Bitcoin getting closer to the $4400 resistance after leaving behind the $4150 level, with the most valuable cryptocurrency being in the forefront of the advance yet again. BTC is the closest to its all-time high among the majors, as it is up by more than 40% since hitting the bottom. With several strong support/resistance levels already below the current price, $4000, $3800, and $3500, the coin looks poised to test the all-time high near $5000 in the coming weeks.
The other majors are in different phases of the recovery, as correlations broke down since last weekend and with the prior leaders, Dash, Monero, and Litecoin underperforming the broader market, another group of coins is leading the advance. IOTA and Ripple were among the most active coins in recent days, and with the long-term charts showing potential gains, they could remain relatively strong. Let’s see the details of the daily charts.
ETH/USD, Daily Chart Analysis
Ethereum is battling with the $300 resistance after recovering above the key $285 level following the crash. The coin got hit hard by the Korean ban but it bounced quickly off the lows, as the short-term remains clearly positive. The token still faces strong resistance near $330 and $380, but odds favor a test of the all-time highs in the current leg higher.
LTC/USD, Daily Chart Analysis
Litecoin has been stick below the $56 resistance all week long, as the coin remained relatively weak after the previous stellar rally and the following crash. The coin is on the verge of a bullish MACD cross, and that could signal the end of the deep correction, and the start of the next rally. Support is found at $51, $44, and $38, while primary resistance is ahead near $64.
XRP/USDT, Daily Chart Analysis
Ripple broke out of its declining short-term trendline, while the long-term picture remained neutral this week. The MACD indicator shows bullish readings, and a rally above $0.22, towards the $0.26 level seems imminent. The currency has strong support at $0.18, and near $0.16, while further resistance is ahead at $0.30.
DASH/USD, Daily Chart Analysis
Dash ended the week lower than last weekend’s levels, as the coin has been relatively weak during the post-bounce rally. The currency is still not far off its all-time high and given the relatively muted correction, more sideways price action is still likely before a sustained move higher. Support is found near $300 and $265, while resistance is ahead at $360 and near $400.
ETC/USD, Daily Chart Analysis
Ethereum Classic showed surprising strength after a period of alarming weakness, and the coin is now trading above both the declining short- and long-term trendlines. That said, the long-term base formation is still ahead as resistance, but the picture looks much better than a week ago, and the current price levels are still attractive for investors. Strong support is found at the $9 level, while key resistance is ahead around the $13.50 level.
XMR/USD, Daily Chart Analysis
Monero is still inside the short-term declining trendline that dominates the correction in the coin. The currency is trading below the $100 level as well, but the long-term picture is still bullish, and after the correction runs its course 9the MACD is slowly getting closer to a buy signal) we expect the coin to outperform once again. Support is still found at $80 and $68, while resistance is still ahead at $125.
IOTA/USD, Daily Chart Analysis
The coin has been among the strongest performers this week, as it broke out of the declining trend and from the short-term consolidation pattern as well. The MACD is clearly bullish after the lengthy move lower, and a rally above the $0.64 is likely in the coming week, with a possible test of the $0.75 level. Support is still found between $0.45 and $0.48, while further resistance is ahead at $1.10.
How to Use These Charts?
As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”
Here is a reminder of some of the possible strategies once again:
Buy and hold, without caring about day-to-day (or even month-month) fluctuations
Buy and hold a core position and add on the major dips; a very powerful strategy
Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
Try to catch major turning points to reduce and “re-boost” your position
Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”
We are proud to announce that TAGOC will be launching a new business venture in the crypto industry within a months time. It is expected to be the largest and most efficient platform of it’s kind in South Africa. We will be publicly announcing the details of the venture within the next 2 weeks. Stay tuned.