May 8, 2018

Bitcoin Cash Price Technical Analysis – BCH/USD Likely to Extend Declines

Key Points

bitcoin cash price failed to move above the $1,700 resistance and declined against the US Dollar.
Yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair may continue to move down and it could even break the $1,550 support in the near term.

bitcoin cash price is moving down once again against the US Dollar. BCH/USD could extend its decline towards the $1,485 level if sellers remain in control.

bitcoin Cash Price Upside Hurdle

Yesterday, we discussed an upside correction above $1,650 in bitcoin cash price against the US Dollar. The price did move higher, but it failed to gain momentum above the $1,700 resistance. Sellers defended gains above the stated $1,700 and pushed the price back below the 100 hourly simple moving average. There was also a failure to break the 50% Fib retracement level of the last drop from the $1,835 high to $1,565 low.

More importantly, yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair. The pair is currently under pressure and it broke the $1,600 support level. Additionally, it is about to break the $1,565 low, which could open the doors for more losses. The next stop for sellers could be the 1.618 Fib extension of the last wave from the $1,568 low to $1,701 high at $1,485. An intermediate support is at $1,536, which is the 1.236 Fib extension of the same wave.

Looking at the chart, the price is clearly under pressure below $1,600. If there is an upside correction, the $1,600 and $1,620 levels are likely to prevent gains.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower below the 40 level.

Major Support Level – $1,485

Major Resistance Level – $1,630

Published at Wed, 09 May 2018 04:08:46 +0000

Analysis

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May 15, 2017

Palestine May Launch Its Own Cryptocurrency as Sovereign Legal Tender

Palestinian officials are planning for the region of Palestine to receive its own digital currency within the next five years. The motivation for this stems from concerns about potential Israeli interference, Azzam Shawwa, Governor of the Palestinian Monetary Authority (PMA), told the news agency Reuters.

Palestinians have no sovereign currency of their own and use a combination of different currencies, including the euro, the dollar, the Jordanian dinar and the Israeli shekel, to conduct their daily financial transactions.

Due to the lack of a sovereign currency, Palestinian officials have little control over money supply and inflation. This is why the Palestinian Monetary Authority wants to introduce a bitcoin-like digital currency as the territory’s new legal tender, which will be called “the Palestinian Pound,” according to Shawwa.

It is the Palestinian Monetary Authority’s goal to become a fully-fledged and internationally recognized central bank for an independent Palestine. However, it is still unclear how a digital sovereign currency for Palestinians would sit with the 1994 Paris Protocol agreement. The protocol agreement gives the Palestinian Monetary Authority the functions of a central bank; however, it has not granted the institutions the right to issue its own currency. The Paris protocol recommends the use of the shekel in the region and, thereby, effectively provides Israel with a veto over the establishment of a Palestinian currency.

A sovereign digital currency, though, would make sense for Palestine. Not only would it allow the PMA to have more control over the country’s money supply and inflation, but it would also circumvent the practical challenges of delivering hard currency into the country as the PMA has no money-printing facilities.

“If we print currency, to get it into the country you would always need clearance from the Israelis and that could be an obstacle. So that is why we don’t want to go into it,” Shawwa explained to Reuters.

While the digital Palestinian pound is planned to be issued within the next five years, this will be no easy task for Palestinian authorities, given that the Palestinian Monetary Authority has been trying for over a decade to become an internationally recognized central bank.

Another option for the Palestinian monetary situation would be to keep the current status quo of the four above-mentioned currencies in use or to officially recognize one of the these currencies as the territory’s legal tender. However, a digital sovereign currency would be the preferred choice for Palestine, according to Shawwa.

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