- Cryptocurrencies lick their wounds after a massive sell-off seen on Monday
- Bitcoin (BTCUSD on xStation5) closes a divergence with the USDJPY
- Russian Deputy PM suggests the central bank has approved the country’s first digital currency exchange
After a hefty sell-off seen at the beginning of the week, all virtual currencies are trying to recoup their losses. Let’s remind that a rout came in the aftermath of the Chinese central bank’s report where it called initial coin offerings (ICOs) illegal. Having assumed that the worst is already behind us, an encouraging trade idea can be found on Dash (DSHUSD) which managed to maintain above an important support zone at around $280. On the other hand, the price has broken a 50% retracement of the latest big leg higher, hence cautiousness is warranted.
Dash managed to stay above a notable support zone at around $280, thus a move higher could be expected. Source: xStation5
Some people argue that Bitcoin could be a good hedge against uncertainty (similar to JPY or CHF), as a result it’s tended to attract buyers when some geopolitical risks emerged. We wrote about a divergence between the USDJPY and Bitcoin on Friday pointing to an interesting trade opportunity. Taking a look at the chart below one could spot that a discrepancy has been already closed (mainly owing to another bout of uncertainty related to North Korea as well as carnage seen in all cryptocurrencies on Monday).
Bitcoin and the USDPY already wiped off a divergence which had occurred over the course of the past days. Source: xStation5
Furthermore, quite a reassuring story came from Russia where the central bank has reportedly approved the country’s first cryptocurrency exchange, at least according to a recent interview with the Deputy PM of Russia. Let’s mention that Russia seems to be getting extremely close to legalizing and regulating cryptocurrencies within the region which could be met with a renewed demand for various types of digital coins. At the end of this thread let’s recall that we’ve already mentioned about the two Russian energy companies (Evrosibenergo and Gazprom) possibly partnering with local Bitcoin miners. Putting all the above-mentioned together, rising popularity of virtual currencies’ usage can be noticed.