Daily market review for 01.08.2018

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2018-08-01 11:10:13

Regulators and governments throughout the world are making attempts to study cryptocurrencies. This is a new revolutionary invention, and states should understand that it is better to integrate them into the economy, Usethebitcoin writes. Perhaps, therefore, the Committee on Economic and Monetary Affairs of the European Platform stated that virtual currencies could be used as an alternative to money. According to the official statement, cryptocurrencies have value, which is determined by the laws of supply and demand. At the same time, it states that they can be exchanged for other goods, services or currencies. “Digital currencies, also known as virtual currencies or cryptocurrencies, can be defined as “a digital representation of value”, not issued by the central bank, credit institution or an electronic money institution, which in some cases can be used as an alternative to money”. Therewith, the Committee explained that the emission is controlled by computer algorithms, which helps create a deficit and in the future increase their value. For example, bitcoin (BTC) is created based on a maximum emission of 21 million units. As new users and new investors enter the market, the number of available BTCs will decrease. This will increase its price. “Cost of cryptocurrencies is defined by law of supply and demand, and this is not followed up by any monetary body (decentralization),” - the statement reads. - “The offer (creation of new blocks) is usually managed by computer algorithms, which help create a deficit for value support. A common feature of various digital currencies is the use of dlt for managing the value”. Moreover, cryptocurrencies are considered innovative and revolutionary. They work in a decentralized manner, since they have no control by a single body, no central bank controls this system. Another important thing that the Committee mentioned was regulation. There is an understanding that this is difficult, and the topic for discussion is not simple. Additionally, European authorities are concerned about the concentration of mining in non-European countries.

Now, let's move to the technical analysis of Bitcoin (BTC):

Bitcoin went down to $7,415, even breaking through the support level of $7,650. Of course, after such a failure, it makes a technical rebound. We are waiting for its further downward movement. The nearest resistance level is a mirror level of $7,800. The nearest support level is $7,350.

Technical analysis of Ethereum (ETH):

Ethereum also reached our yesterday's goal, going down to the support level of $415 and even breaking it, dropping to a mark of $405. Now, it makes a technical rebound to the mirror level of $440. We expect its further downward movement. The nearest support level is $400.

Technical analysis of Ripple (XRP):

Ripple fell to a mark of $0.415, having fulfilled our yesterday's forecast. Then, it jumped to the level of $0.45. If to compare ripple with bitcoin and ethereum, then perhaps ripple attracts much more aggressive and larger buyer. The nearest support level is at $0.41. The nearest resistance level is $0.45.

Disclaimer. This review is only for information purposes and cannot be considered as a proposal or an indication to perform certain transactions in the financial and commodity markets. The estimates and recommendations in the review are the personal opinion of the company's analysts. The company's view on the prospects for individual financial instruments is valid as of the date of the report. The Company does not assume any liability and liabilities for compensation for damage that may result from the use of this report.
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