The digital currency is a non-correlated asset very similar to metals except it’s a lot easier to transport and it can actually be used to purchase items.

In the previous days, we saw US Securities and Exchange Commission reject the bitcoin traded ETF and subsequently dropped the crypto market confidence a bit.

A huge wave of news reports was released on the matter, which in our opinion is a waste of time, keeping in mind that Crypto ETFs would most probably return to claim allowance again and ultimately succeed.

Very importantly, the private markets regarding digital coin investing is currently massive with huge amounts of money being invested.

Bitcoin prices fell as the news was released but held upwards as the coin corrected later on.

We set off to explore some points that could have been questioned by the authorities in order to finally reject the ETF’s license.

Until very recently, security among the Crypto market was of high importance and concern.

Cyber theft has taken place many times in 2018, especially in Asia which also caused many people to cash out the Crypto industry stating reliability was absent.

It could be the case that over half a billion USD worth of Crypto’s has been stolen in the previous years, and even though people are now keeping coins offline, security has not been restored completely.

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Second, is the fact that vulnerability of cryptocurrency markets towards sharp price moves creates uncertainty but also an easy pray for price manipulation.

Third, the anonymity of transactions is one of the key founding principles of Bitcoin that remains a huge barrier within the industry.

The absence of transparency on the distributed ledger technology is seen by some industry participants as a limitation to broader acceptance by both institutional and individual investors, but also regulators.

On another front and according to Reuters, IBM and nine financial institutions, including Barclays Plc and Citigroup Inc., are testing a platform to access blockchain-based applications.

The platform, will offer services like customer compliance checks, approval and agreement details and collateral management, it was said.

LedgerConnect which is the firm offering this platform, aims to promote the use of blockchain-based software to other companies.

On a separate note, according to legend trader and hedge fund owner Bill Miller there are only 17M bitcoin outstanding currently.

This event is now causing more and more investors to move into areas with cheap energy costs.

Areas in Northern Virginia and Dallas-Fort Worth have been acquired by firms to bring out crypto mining activities.

These sites are data centers with huge energy capacities and airtight security and are very similar to rigs in the Oil industry, just these aim for Bitcoins and use megawatts as fuel.

Many firms are now joining the crypto mining industry boosting demand for the digital currencies but at the same time could be enacting a huge bull market.

As a conclusion, we would like to stress the opinion that cryptocurrencies have the potential of becoming all these things that they are not at the moment.

We could see digital coins becoming a payment method, we could see them utilized as a real currency but most importantly coins could be accepted by central banks and regulatory bodies as an innovative asset.

During the past and the current week, BTCUSD broke one of our support levels which has now turned to Resistance (R1) $8,186. This minor drop was due to the rejection of the Bitcoin traded ETF.

If traders continue to purchase BTCUSD they could force it to move even higher to the $8,186 (R1) resistance level and even surpass it aiming for the (R2) $8,580 resistance barrier.

We support the opinion that, if the digital asset is to move higher, it could do it gradually and not at once as this was the case until now in previous weeks.

On the opposite side, if traders decide to sell the digital coin we could see BTCUSD break the (S1) $7,690 Support level and aim for the $7,120 (S2) support hurdle.

The other scenario is for the Crypto to remain between the $8,186 (R1) resistance level and the $7,690 (S1) Support barrier swinging from level to level.

This could also be the case due to the fact that the RSI indicator is on the reading of level 50 which indicates a rather uncertain market.

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