2 minutes reading time (475 words)

Daily Dose: Bulls in a China Shop!

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Bitcoin was able to close the weekly candle (Oct 21) with a pump from a low of $7,300 to a high of $10,370. The 3rd largest single day move in Bitcoin's history, fueled by the Chinese President announcing support for Blockchain initiatives. The last time it moved this way, Bitcoin was worth less than $10. The move was not obvious in the daily chart but higher timeframe (weekly chart), showed a possible significant support around the $7,300 area. Currently, price is looking for support as sellers immediately took opportunity of the intraday rally to take profits. If price is able to hold above $8,800 - $9,000, BTC can possibly push for another rally towards key resistance level around $11,000 in the daily chart. Otherwise, a fall back within the current range is likely. Intraday rallies can give high reward opportunities but it can also be detrimental if defined stops aren't put in place.

Global market cap is at $250B, while BTC's market cap is at $170B.



* China seized opportunities in blockchain technology as more than 500 blockchain projects have been registered with the Chinese government since March. Projects include banking giants, tech companies, government projects and others. Congress also passed a cryptography law a day after Chinese president Xi Jinping's call for more research on blockchain techonology, which in turn seemed to trigger a massive positive response from the country in the crypto market. Literally all companies with blockchain on their stock market hit their intra-day maximum gain.

* An unknown Bitcoin Cash (BCH) miner was apparently in control of more than 50% of its hash rate for 24 hours. The miner, or potentially miners, mined over 70 blocks from Oct. 24 to Oct. 25. By controlling 50% of the total hash rate, the miner wasn't far off from controlling the entire network, which is a security risk and could have been one of the biggest consensus attacks the network has seen.

* After the president of Panama-based payments processor Crypto Capital, Ivan Manual Molina Lee, was arrested last week after being suspected of money laundering and being involved in an international drug cartel, another one of their executives has been indicted. Oz Yosef was indicted by the US Attorney for the Southern District of New York on conspiracy to commit bank fraud, bank fraud, and conspiracy to operate an unlicensed money transmitting business. Bitfinex recently alleged Crypto Capital of defrauding the exchange of over $850 million.

Today's daily dose is once again brought to you by our partner SCI News Channel.

 

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