Bitcoin and other cryptocurrencies have seen an ongoing struggle to make any headway to the upside. In recent weeks, the price of Bitcoin has dropped to under $6000 before finding some willing buyers. As these markets continue to wade through increasing regulatory scrutiny and other factors, the road ahead may be bumpy and market volatility could remain elevated.
Some recent positive news may, however, ignite some fresh interest in the cryptocurrency space. In a recent article from marketwatch.com, it was reported that the Swiss Stock Exchange has announced plans for a digital trading and settlement platform for cryptos.
The article stated:
“The Swiss stock exchange has announced plans for a digital trading, settlement and custody venue for crypto assets — one of the first moves by a mainstream European exchange to open its doors to digital tokens and securities.
SIX Swiss Exchange, part of SIX Group, which is co-owned by 130 banks, said in a statement that it has created an “end-to-end” exchange for digital assets — which could potentially lead to the trading of cryptocurrencies like bitcoin BTCUSD, +0.91% in the future.
SIX claimed its status as an established mainstream market means investors can trust it as a “safe” place to trade such crypto assets. Jos Dijsselhof, chief executive, said it was the start of a “new era” for infrastructure providers such as exchanges, clearing houses and custodians.
The move is one of the biggest statements of intent by a European exchange to move into crypto assets, which have been heavily criticised by some economists and financiers, while regulators sound alarm bells.”
The idea of a major exchange rolling out a trading venue for cryptocurrencies could potentially provide a much-needed lift to the sector. Crypto markets still have a long way to go, however, to be considered more “mainstream.”
Bitcoin: Bitcoin finally found a bottom-at least for now-for under $6000. The market has since seen some bargain hunters step in, and prices have risen by several hundred dollars to trade near the 6.6k level. On the larger time frames, the market remains in a downtrend. That being said, it has shown some signs of possibly bottoming out and the selling pressure has slowed significantly.
Bitcoin Cash: This crypto has been primarily range-bound this week, and seems comfortable around the $720 level. Like other currencies, it remains in a trend lower but has shown some signs of finding a bottom. A break lower under the $650 level could, however, set the stage for a fresh leg lower in price. The $650 to $720 range may be defended by the bulls, however, the market will likely need a fresh bullish catalyst to make a sustainable move higher.
Ethereum: This crypto has traded between $460 and $480 for much of the week. Although the selling has slowed, the market may have more work to do before finding a long-term bottom. A dip down to the $300 cannot be ruled out, and the currency may need to see either a sharp dip or substantial rally from current levels to attract more interest.
Ethereum Classic: This crypto has been able to buck the trend in recent action, and has actually been trending higher. The trading week saw prices move between $16 and $18, but the market is at the highs of the week on Friday, up almost 7% for the session. The currency is trading around a three month high, and a solid break above the $18 level could ignite a significant rally.
Litecoin: This crypto has not had much to get excited about in recent weeks, and looks ready to end the trading week on a sour note. After making a high near the $90 level this week, the market has backed off and drifted back down to around the $83.31 level. Its technical posture does not look great either, and it could see another sharp leg lower in the absence of any fresh, bullish catalyst.
Ripple: This crypto traded in about a four cent range most of the week, and appears to be trying to maintain trade around the $.48 level. The trend on the larger time frames is still pointing lower, however, and the currency could see another wave of selling taking prices to fresh lows. Like other currencies, it has seen little interest in recent weeks, and remains vulnerable to fresh selling without any new, bullish inputs. The currency may get a lift, however, if overall market sentiment improves.