TRADER MAGAZINE

JANUARY - MARCH 2018

WILL THE BIRTH OF A NEW DIGITAL ECONOMY M A R K T HE END OF FIAT CUR R EN CIE S ?

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B I T C O I NT R A D I N GSTRATEGIES

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BTCBACK TO THEF U T U R E

ICHIMOKUKINKO HYO

EXPLOITINGFIBONACCIEXTENSION

ZONES

US DOLLARS TA B I L I Z E S

FXCONTENTs

BITCOIN, CRYPTOCURRENCY AND BLOCKCHAIN... The Birth of a New Digital Economy

33

Reveals where major currencies and BTC are heading in 201856

07 EDITOR’S NOTE

FUNDAMENTAL ANALYSIS

62 Central Bank Meetings: a look at December’s BoE, FED and ECB meetings outcome

CURRENCY WATCH

29 Swiss Franc: CHF to keep weakening

14 US Dollar: USD medium-term consolidation ahead

26 New Zealand Dollar: NZD is expected to strengthen

23 Swedish Krona: SEK should

strengthen over the course of 2018

TRADING SYSTEMS

40 Exploiting Fibonacci Extension Zones: how to exploit price behaviour to define zones of tradeable probability

CRYPTOCURRENCIES

08 Back to the future. Will Bitcoins future be dictated by the past?

20 Bitcoin: A Standout of 2017

51The truth behind Bitcoin success: does BTC represents the final chapter of the repudiation of fiat currencies?

BOOK REVIEW

65 Trading Cryptocurrencies: A Beginner’s Guide by Clem Chambers

TECHNICAL ANALYSIS

66 Technical Outlook:EUR/USD, GBP/USDUSD/JPY, AUD/USDNZD/USD, USD/CADUSD/CHF, USD/NOKUSD/SEK,

75 EXCHANGE RATES

71 CONFERENCES & SEMINARS

72 ECONOMIC CALENDAR

ICHIMOKU KINKO HYO INDICATOR 20

POPULAR BITCOIN STRATEGIES

Which strategy to choose before entering the cryptocurreny boom

FX TRADER MAGAZINE January - March 2018 3

FX TRADER MAGAZINE January - March 2018 33

Bitcoin, Cryptocurrency and Blockchain...The Birth of a New Digital Economy

The constrained

supply of mining

equipment has created

a perfect storm for

price appreciation

Miners have almost

cartel type pricing and

play games on the new

units

Retail acceptance of

bitcoin has been slow

but is starting to get

some traction

by Michael Sheikh

The exploding price of bitcoin has ushered in a new cryptocurrency ecosystem. Michael Sheikh of Falcon Strategic Research decodes the bitcoin world order for investors.

FXCRYPTOCURRENCIES

34 FX TRADER MAGAZINE January - March 2018

Bitcoin is starting to dominate headlines and as it powers higher, investors want to know what exactly does this mean for portfolios. The exploding price of bitcoin has ushered in a new cryptocurrency ecosystem. Investors can draw parallels to the Apple (AAPL) ecosystem, which includes suppliers of parts, retailers that sell hardware, telecom providers of bandwidth, and application developers that create useful utilities. The point is if AAPL did well so did the whole ecosystem of interrelated companies. If it did poorly the results tricked down and they were correlated.

The same thing is happening with bitcoin. There is an ecosystem that surrounds bitcoin and drives innovation and productivity forward. The computer graphics makers like Nvidia (NVDA) that make the CPUs for the mining units have been growing full tilt. Exchanges and money changers like CoinBase and Bittrex have started to see markets develop and in turn spurred the creation of funding mechanisms through Initial Coin Offerings (ICOs). The blockchain is creating new industries and removing the inefficiencies of clearing transactions. All of this is built on bitcoin. The miners play a big part in this ecosystem providing the coins or raw materials for all of it to exist and new innovations in the blockchain technology are fueling the growth in fin tech applications.

Factors Propelling Bitcoin Price Action

Moore’s Law states that the number of transistors per square inch of chip doubles every two years. In reality it has been every 18 months. Common sense tells us

that exponential growth cannot last forever. According to Investopedia, “Many designers, engineers and computer scientists agreed in early 2016 that Moore’s Law may run its course within 10 years. Progress achieving the doubling of the number of circuits has

CRYPTOCURRENCIESFX

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