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Cryptocurrency News: Central Bank Testing; BTC Chart Breakout Eyed

Cryptocurrency News: Central Bank Testing; BTC Chart Breakout Eyed

Nick Cawley, Strategist

- South African Reserve Bank looking at digital regulations; London Stock Exchange testing blockchain.

- Bitcoin (BTC) looking for a breakout.

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Digital Technology Gaining Credibility as Testing Increases

The South African Reserve Bank (SARB) will commence testing a number of bitcoin (BTC) and other cryptocurrencies regulations over the next few months, according to blockchain solutions provider, Bankymoon, the company’s CEO said at a recent event. The company will trial-run new regulations for SARB on an experimental basis. The trial follows on from a recent IMF Staff Discussion Note which highlighted that, due to digital technology advances, the financial sector is poised for change and that policymakers will need to be “nimble, experimental and cooperative.”

Governments around the globe are looking at ways of regulating the new technology as individuals become increasingly involved in the digital currency revolution.

The Central Bank of Belarus revealed late last week that it had opened the way for banks to use blockchain technology to issue bank guarantees or promises to cover debt losses.

The London Stock Exchange (LSE) is also testing the waters, according to a recent report, testing blockchain to store private company records. The Coindesk report quoted LSE’s David Harris as saying that if successful then the underlying technology could be used to simplify not just the record storage but the simplification of the fund raising process as well.

Bitcoin (BTC) Trading Band Narrows – Is a Breakout on The Cards?

A look at the BTC four-hour price chart shows the cryptocurrency is currently constrained within a tight trading range and looks ready to breakout to the upside with a bullish flag pattern forming. A break higher sees $2930 come into play ahead of the all-time high around $2980.

Chart: Bitcoin Price (BTCUSD) Four-Hour Timeframe (July 3 - July 24, 2017)

Cryptocurrency News: Central Bank Testing; BTC Chart Breakout Eyed

Chart by IG

Ethereum (ETH) Looks Ready to Continue its Bull Run

And the second-largest digital currency by market cap also looks ready to continue its 2017 stellar run with the recent high around $258 the first target. ETH started 2017 around $9.50 and soared to a high of $412 in mid-June.

Chart: Ether Price (ETHUSD) Four Hour Chart (July 1– July 24, 2017)

Cryptocurrency News: Central Bank Testing; BTC Chart Breakout Eyed

Chart by Trading View

Market Moves/Top 5 Capitalizations – July 21, 2017.

Cryptocurrency News: Central Bank Testing; BTC Chart Breakout Eyed

Chart by Coinmarketcap.

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--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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