Cryptocurrency Newsletter: Will cryptocurrencies remain anonymous?

Summary:

  • G20 will hold a debate about crypto regulations
  • Tron and Ethereum will cooperate on a common project
  • Technical analysis of Bitcoin and Ethereum
     

Will the meeting of G20 be vital for cryptocurrencies future?

The Japanese city Fukuoka will host the G20 meeting on 8-9 June where central bank presidents and finance ministers will discuss cryptocurrencies in the context of Anti-Money Laundering (AML). The event will be focused on terrorism financing and cryptocurrency transactions will be analyzed from that perspective. The G20 is obliged to set FATF(Financial Action Task Force) standards for the cryptocurrency markets. Representatives are looking to establish more strict personal identification of cryptocurrency payments in order to limit their use (and abuse) by terrorist organizations.

Does it mean the end of the cryptocurrency impersonality? The jury is still out but the G20 decision will be significant for the cryptocurrency markets and investors should keep a close eye on it.

The partnership between Tron and Ethereum

Justin Sun, CEO of decentralised e-commerce platform Tron (TRX), announced during The Crypto Chick podcast the following that "Officially, Tron's ecosystem start a partnership with Ethereum". The main aim of Tron, as it’s the case for Ethereum as well, is to build an ecosystem which enables to programme decentralised applications (dApps) and smart contracts. It is worth mentioning that Justin Sun made the acquisition of BitTorrent - the oldest p2p platform in June 2018. The platform will most likely be integrated with a Tron's system in the future. It might have a positive influence on Tron and perhaps on Tron and Ethereum value too.

Will the cooperation of competitors be a sign of the consolidation in cryptocurrency industry? A huge depreciation of cryptocurrencies from 2017/2018 peaks, decreasing payoffs for minors and elevated costs of mining  - all of that has affected the industry. Along with the market development and rising costs, it is expected that even more cooperation and acquisition activity could take place there in the future. It is a natural process of every market development giving opportunities to gain a competitive advantage.

Technical analysis: Bitcoin and Ethereum

Bitcoin

Bitcoin is losing some pace after experiencing a strong bull market last week. The price is consolidating around the key level of $5255. At this level some signs of bears’ presence have been spotted. Presumably, the price may be moving within a $4777-5255 range. A breakout of one of these levels would give some room for the price to hit either $4117 (support) or $6000 (resistance).  The key level of $5535 can get in a way of $6000. Note that this level ($5535) halted the bulls last year.

Bulls have some problems to pass through the last week highs. Source: xStation5.

On the 4-hour chart, one may notice that bears have shown their strength in the vicinity of $5255. A breakout of the SMA20 and trendline would be a clear signal for the price to reach the key level nearby $4777.

Bears are taking over bulls. Source: xStation5.

Ethereum

Ethereum reflects the Bitcoin's price quite well. Both cryptocurrencies are highly correlated. A bigger move at one of the charts should be a warning sign for investors.

Bitcoin and Ethereum are highly correlated. Source: xStation5.

Ethereum tested the key level of $183.5. Price action suggests selling pressure and bears are aiming for $160.555. This key support area would be crucial for future price moves. A breakout of $160.55 might cause a sell-off and return to a previous consolidation.

Bears are aiming for the key support area at $160.55. Source: xStation5.

 

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