Let me start today’s update by stating once again that you need to be patient with this year’s cryptocurrency market. I have been writing about the growing acceptance of cryptocurrencies and you can catch up on my latest at “Bitcoin - Forex Combo Strategy: Cryptocurrency Acceptance Grows”, but just because a lot of moving parts on the fundamental side are moving in the right direction doesn’t mean that prices will surge with each bit of new information. This is yet another sign of a maturing market where direction comes from professional traders and not Twitter headline chasing retail traders.

On Monday, January 28th 2019 we started with a sell-off and many started to panic. Keep calm, support levels are holding. Also keep in mind that support or resistance is not one static number, but rather a zone. Most cryptocurrencies remain confined to their support zones and I expect that we will see a breakout rather soon. Staying with the trend of positive, fundamental news flow, I want to take a quick look today at the Gemini Exchange and for a good reason. This cryptocurrency exchange was founded by the Winklevoss Twins, Cameron and Tyler, and since yesterday became the first cryptocurrency firm which passed the System and Organization Controls (SOC) 2 Type 1 protocol.

Auditing firm Deloitte conducted the security review. The American Institute of Certified Public Accountants or AICPA notes that “SOC 2 examinations are specifically designed to address controls at a service organization relevant to the systems at the service organization used to process users’ data.” This is yet another important milestone in ensuring traders that the cryptocurrency ecosystem is maturing. It remains a delicate balancing act as privacy is one of they drivers behind many coins and there has been a tug-of-war between more transparency in order to receive various approvals from regulators and in maintaining the privacy many users prefer.

The SOC 2 examination is a great way for an exchange to show their ability to ensure smooth and fair operations. The Gemini Exchange as well as Deloitte performed independent tests and stated that “This included a review of Gemini’s exchange application, infrastructure, and underlying customer database, as well as its institutional-grade cryptocurrency storage system that custodies the private keys of Gemini’s online and offline wallets.” The Gemini Exchange further added that it will apply for the SOC 2 Type 2 protocol and that it intends to carry out the exams once per year.

Adding to the validity of the Gemini Exchange is an audit by firm BPM into the Gemini Dollar, which is the exchanges own stable coin. BPM confirmed that the cryptocurrency exchange had $91 million in fiat currency reserves which was enough to fully back all Gemini Dollars in circulation as of December 31st 2018. Stable coins are supposed to hold enough fiat currency in banks in order to back all circulated coins which gives them a stable exchange rate of $1 per issued coin. Tether is one of the best known stable coins as many traders use it for Bitcoin transactions. Tether was partially blamed for the Bitcoin bubble and many question if it is fully backed by fiat currency. Several audits revealed that it indeed is. The Gemini Exchange is taking the right steps in order to build trust in the cryptocurrency ecosystem, not because they are forced by governments or regulators but because they understand how to properly operate an exchange.

As I have mentioned at the start of this update, cryptocurrencies tanked to start the week. I am not worried about the drop and expect a full recovery and then some. I maintain my 200 Bitcoins at an average entry price of $4,315, my 4,500 Ethers at an average entry price of $131.22 and my 600,000 Ripple at an average entry price of $0.3250. Over the next fwe week's I do expect price action to move higher, potentially with neough bullish momentum to result in a breakout above solid resistance levels. The three images below show the start of a price action recovery which I believe will be extended.

While cryptocurrencies started on a down note, Gold finally managed a breakout above the psychologically important $1,300 mark which more than offset my cryptocurrency losses for the week. I think this precious metal will now test the $1,300 level and after a sideways trend we may march towards my next price target of $1,500 which I think we can reach this year. The image below shows my Gold position, I hold 100 lots which I purchased at $1,195 for a margin requirement of $123,179 and with a pip value of $100.

From my four open forex positions, I only closed my 25 lots short position in the EURGBP as my adjusted take profit was hit at 0.8650 on January 28th 2019. I closed this trade for a profit of 175 pips or $57,225. I keep my 25 lots long position in the AUDUSD as well as my 25 lots short positions in the USDJPY and AUDJPY. I think we will see a rally in the Japanese Yen as safe have demand will pick up. The images below show my closed EURGBP trade and then my three open forex trades from last week.

Yesterday, January 29th 2019, I added a 25 lots short position in the NZDUSD at 0.6850 according to this trading recommendation “NZDUSD Fundamental Analysis – January 29th 2019”. My margin requirement was $3,417 and each pip is worth $250. Earlier this morning I added to my bearish US Dollar trades with a long position in the EURUSD, 25 lots at 1.1410 for a margin requirement of $5,709 with a pip value of $250. The original recommendation can be fund at “EURUSD Fundamental Analysis – January 30th 2019”. The two images below show the new entries to my forex portfolio.

Let’s take a look at my overall portfolio. I have 200 Bitcoins worth $678,620, 4,500 Ethers worth $466,200 and 600,000 Ripple worth $185,760. My 100 lots of Gold are worth $1,278,779. My forex portfolio consists of the five following positions, all with a lot size of 25: AUDUSD long position worth $13,064, USDJPY short position worth $3,634, AUDJPY short position worth -$10,328, NZDUSD short position worth $4,067 and a EURUSD long position worth $7,459. I also have a total cash position worth $116,796. My total portfolio is worth $2,744,051, up $242,161 as compared to last week and a new all-time high. A perfect example of why it pays to diversify your portfolio properly and have smart hedges in place. I invite you to open your PaxForex Trading Account now and start building a powerful trading portfolio with the help of my Bitcoin-Forex Combo Strategy.