Crypto newsletter: Bulls are back testing major resistance levels

 

Mixed moods prevailed on the cryptocurrency market this week. During the first part of the week, major cryptocurrencies were trading lower, however yesterday bulls managed to erase recent losses. Positive moods can also be seen during today's session.  In the current week, the crypto total market cap fell to an early Monday low $ 238.04bn before rising to $267.7bn on Friday. Bitcoin’s dominance fell to a Monday low 66.38% before a Thursday 69.54% spike. Today Bitcoin’s dominance stood at 67.00%.

 

 

Bitcoin is testing $ 9,600 resistance after breaking the key level at $ 9,400 for the first time in seven days. This sharp rebound follows last week’s drop to $ 8,600. Higher volatility is expected during today's session as CME Bitcoin (BTC) futures and options markets are set to mature today and traders are closely watching to see how spot prices will react to this event. The contracts expire every two months and according to market analysts, they negatively influence BTC’s price in spot markets.

 

Goldman Sachs slammed Bitcoin during an investment advisory call for its clients on Wednesday, saying the world’s number one cryptocurrency “is not an asset class,” nor “a suitable investment.” The bank listed 5 reasons why you shouldn’t invest in Bitcoin:
1. It doesn’t produce cash flow like bonds.
2. It doesn’t generate profit through exposure to global economic development.
3. Bitcoin doesn’t deliver consistent diversification gains due to unstable correlations.
4. It doesn’t increase volatility given historical volatility of 76%. The bank noted the case when Bitcoin plunged 37% in a single day, alleging that its volatility is off the charts.
5. It provides no proof of hedging against inflation.
The bank added that despite the fact that hedge funds may be interested in trading cryptocurrencies due to high volatility, that’s not a big enough reason to invest in them.

 

 

Ethereum -  bulls remain in control for the third straight day. Currently price is testing key resistance at $215.00. In the near term, if buyers won't be able to push the price above the above mentioned resistance level, there is a possibility the bearish grip will strengthen pulling the crypto back to $188.84 support.

 

IOHK CEO Charles Hoskinson announced on Thursday that the Shelley upgrade for Cardano will be introduced next month. It will start rolling out the network between June 30 and July 7. This follows a successful incentivized testnet. Charles Hoskinson, CEO said in a statement:

"Guys wanna know when Shelley is? Let’s tell ya… June 9 – this is when it opens up to everybody. The next date we have for you is June 16, that’s when we start putting things together end-to-end… If everything works without a hitch, June 30 we’re shipping Shelley."

 

 

Securities and Exchange Commission (SEC) ordered a blockchain research firm referred to as BitClave to close its operations and refund $25 million to over 95,000 investors. The project conducted an initial coin offering (ICO) in 2017  and its goal was to develop a blockchain-based search network and advertising platform. The promise made to investors was that the tokens sold to them would rise in value as exchange listings increase, a decision that saw the SEC classify it as an unregistered security. Also the company will  pay $3.8 million in fines.