Summary:
- Bitcoin (BTCUSD on xStation5) makes a remarkable U-turn during the passing week
- Swiss asset management firm will launch a new futures product for its clients wanting to bet against Bitcoin
- $7400 seems to be the closest support line for the Bitcoin price
- Ripple (XRPUSD) soared yesterday afternoon as the Ripple-based technology gained momentum
It’s been the amazing week on Bitcoin as the most famous digital currency has made a tremendous U-turn falling from almost $8000 to close to $5500 just to climb once again towards $8000 – all it means that volatility has reached as much as 29%. Let us remind that Bitcoin has bounced back after trimming $38 billion in market capitalization on Monday following the cancellation of a technology upgrade as known as SegWit2x.
On top of that it’s worth mentioning that the Swiss asset management firm Vontobel will launch a new futures product designed to let customers bet against the price of Bitcoin. Implementation is to take place as soon as today and the offering will enable investors to reap gains even if the Bitcoin price plunges. According to Reuters, the company will release two mini futures, a type of derivatives instrument that represents a fraction of the value of standard futures. Let us recall that earlier this year CME announced that it would launch Bitcoin futures in December.
Bitcoin (BTCUSD) continued its rally during the yesterday’s session nearing $8000. Source: xStation5
Taking a closer look at the Bitcoin price one can spot that it was able to establish its new all-time peak, it failed to be maintained though. That said we could argue that bulls could eye $7400 as their closest support area which might potentially halt any deeper declines. If this level survives, Bitcoin buyers could take a stab at breaking $8000 anew opening up themselves space for subsequent gains.
Whipping through cryptocurrencies it needs to mention Ripple (XRPUSD) which made an outstanding increase during Thursday. The price was walking sideways and it surged all of a sudden from ca. $0.2 to approximately $0.265. It could be ascribed to the news that American Express and Santander have partnered with financial technology firm Ripple to speed up cross-border payments between the US and the UK by using blockchain technology. As a result payments made by American Express’ business customers on its FX International Payments (FXIP) platform will now be routed through Ripple’s enterprise blockchain network, RippleNet.
Ripple (XRPUSD) marked an astounding pick-up during the Thursday’s session but the price subsided afterwards. Source: xStation5
After an amazing rise seen on Thursday the Ripple price came back to its crucial support zone nearby 0.215$ which could encourage more buyers to involve in the market. Once this level is defended, there would be a possibility of a resumption of increases which in turn could reach the highs placed in the vicinity of $0.295. On the flip side, a breakout of the nearest support might bring about a decrease toward a blue trend line being the last resort for bulls. Therefore, should they fail to retain the price above this line a deeper slide would be in the offing.