- Plant MasterCard an Integration of the Blockchain into the existing Settlement System?
- Complaint filed against JP Morgan CEO Dimon because of Statement on Bitcoin!
- Gold investor John Hathaway calls Bitcoin as "Garbage"!
- ETH Course Analysis for Week 38/2017!
There are indications that the MasterCard credit card provider plans to integrate blockchain solutions into the current settlement infrastructure.
Thus, the U.S. Patent office (USPTO) announced last week that the credit card giant has patented a new solution. Under the name "Method and system for recording point to point transaction processing", the system aims at the authenticity and the steadily growing number and increased frequency of B2B payments.
Remarkable is the repeated naming of "blockchain" as a distributed ledger (account book) for the high volume of transactions:
MasterCard explains that all changes can be automatically recorded using a blockchain solution, thus verifying each transaction and making it unchangeable in the history. It could thus be made impossible for fraudsters to change transactions later in the system.
The patent application is the latest from MasterCard. Already in the past the credit card provider filed patent applications in connection with blockchain solutions.
JP Morgan CEO Jamie Dimon had recently referred to Bitcoin as "fraud". As this was done as CEO of the investment giant while the company was investing simultaneously in Bitcoin ETFs, a formal complaint was filed against Dimon.
While Dimon Bitcoin publicly lamented, JP Morgan continued to buy Bitcoin ETFs - has the CEO here tried to push the purchase price, and thereby manipulate the market?
According to the company Blockwater: yes. Therefore, a complaint was filed against Dimon at the European Union's Market on the grounds that Dimon had violated Article 12 of the European Union's Market Abuse Regulation (MAR) by declaring that crypto currency Bitcoin was "a fraud".
Blockswater works with blockchain-based assets based in London and Austria.
Florian Schweizer, Business Partner of Blockswater, said in an interview:
Blockswater said JP Morgan traded bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon’s statements, which Schweitzer said "smells like market manipulation".
It seems unlikely, however, that Dimon will be genuinely accused, or even to condemn a conviction, JP Morgan will take care of this with the influence they have.
With all the enthusiasm for crypto currencies there are always some who do not lose a good word to Bitcoin and Co. - such as gold investor John Hathaway.
Only recently, JPMorgan CEO Jamie Dimon Bitcoin had described fraud and bubble. Shortly thereafter the Bitcoin course broke down. John Hathaway joins the line of Bitcoin basher, who is concentrating mainly on gold investments with its fund management Tocqueville Asset Management.
In an interview with Kitco, a new site for precious metals, Hathaway said that crypto currencies are "garbage". So it is perfectly clear to him that it is an "absolute bubble", even if it is as possible in any bubble, of course, to make a lot of money, if one jumps off in time.
Hathaway also drew attention to the low market capitalization of crypto currencies compared to the world's gold holdings. A point which, unlike its "rubbish designation", can not be dismissed by the hand. The approximate market capitalization of the world's gold holdings is more than 60 trillion US dollars, which is about 50 times the current crypto sector.
Negative utterances accumulate
More and more investors and bank representatives have been negatively commenting on crypto currencies. It is understandable, finally, that many representatives of the "traditional" investment and financial business see an ever-increasing competition. So the well-known investor Peter Schiff also heavily focused on the gold sector, which in an interview with CNBC Bitcoin had also described as a bubble or as a worthless asset.
Statements such as these will still exist in the future. Depending on who they come from, they can also push the Bitcoin course down. However, this is only a matter of short-term price consolidations without a long-term impact. Investors should respond appropriately to such utterances.
Rather than pulling trenches between the investor groups, it should be clear to everyone that there are good reasons for traditional asset classes such as stocks and precious metals, and good against it. In the case of crypto currencies, this is no different, also here you can find many pros and cons arguments.
If you are interested in a comparison between gold and bitcoin in this context, my analysis of both asset classes can be read here.
Recovery in sight? The Ethereum price has risen this week and recovered after a dip between 22nd and 23rd September, which now stands at EUR 234.84 (USD 280.66).
Image based on data from Kraken.com
Summary
- The Ethereum course has risen during the week.
- Between September 21 and 23, the price fell to EUR 212.64 (USD 254.13), but has since recovered.
- The short-term support is EUR 218.04 (USD 260.58), the short-term resistance is EUR 239.16 (USD 285.82).
While JPMorgan's attacks on Bitcoin have continued, the situation at Ethereum has calmed down somewhat more. The statement by Vitalik Buterins is not entirely innocent, of course, that Ethereum would in the foreseeable future exceed the volume of transactions with which VISA is daily struggling. Ethereum could develop accordingly and has increased. On 21 September, a small dip resulted in a weak triangle pattern with slightly sinking maximal. Currently, the price can hold steady over the exponential moving average for 48 hours while the exponential moving average is currently being tested over 24 hours.
The MACD (second panel) is positive according to the development this week but the MACD line (blue) has fallen below the signal (orange).
The RSI (third panel) is at 50 and is thus neutral.
The analysis of the movements in the 60 mins. chart speaks a slightly bullish language. The most important support of the week is described by the current Triangle Pattern and is around EUR 218.04 (USD 260.58). A central resistance this week is the Triangle Pattern, which is currently EUR 239.16 (USD 285.82).
The long term course development
Let us consider the 240min chart as the first to assess medium and long-term developments:
Image based on data from Kraken.com
The downtrend, which marked September, was broken! Of course, it remains to be seen whether this breakthrough is sustainable, but a first hesitant attempt to shake off the downward trend of the last few weeks is clear. Accordingly, the price is also over the exponential moving average values over one or two weeks, even if the former is currently being tested.
The MACD is positive according to this breakthrough, more precisely the MACD line is larger, the signal is less than zero, but is also shortly before a breakthrough of the zero line. The RSI is slightly bullish at 53. In the medium term, the situation is bullish. Most important support equals the minimum a few days ago at EUR 210.28 (USD 251.31). The most important resistance is around EUR 244.91 (USD 292.69), which would mean an end to the downtrend.
Let's take a look at the 1D chart:
Image based on data from Kraken.com
The dramatic downtrend, which determined mid-August to mid-September, has now been sustained, but the price has moved slightly sideways since then. Regarding the development between March and the previous all-time high, it can be seen that the price is currently trapped between the 38.2% -Fib retraction level and the exponential moving average over a month. The MACD is negative-but the MACD line has increased slightly over the signal. The RSI is slightly bearish at 47.
Overall, the long-term forecast is slightly bearish. The most important resistance is described by the exponential moving average over two months and is EUR 246.36 (USD 294.42). In addition to support at the 38.2% -Fib retracement level at EUR 216.41 (USD 258.63), the support of the month-defined support would be EUR 188.65 (USD 225.46) for a resume of the steep downward trend speak. So let's hope that the downward trend in the 240min chart can be overcome sustainably!
Disclaimer: The course analysis is from the morning and can have changed since. The price estimates presented in this post are not a recommendation to buy or sell. They are merely an estimate of me.
I wish you all a lovely Sunday and a great start in the new week!!!
Best regards
@danyelk
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