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The Market Is Full Of Panic, BTC, XRP, ETH Have Made New Lower Lows: Price Analysis, Oct. 11, 2018

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  • Vaido Veek
    📈 Price Predictions

    Bitcoin breaks all the important support levels, Ethereum hanging above the round number, Ripple can make the biggest drop

The Market Is Full Of Panic, BTC, XRP, ETH Have Made New Lower Lows: Price Analysis, Oct. 11, 2018
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin breaks all the important support levels

The image above shows that the market is full of panic, again! Bitcoin moved downwards $370 within two hours, and altcoins are obviously in the deep red confirming that move: -8 percent to -10 percent on an average. The volume was pretty high: the last time when there was that kind of volume was on Sept. 5; then BTC dropped down from $7,400 to $6,300.

The BTC price made a very strong downwards breakouts from patterns and price levels:

* Break below the curve support;

* Breakout from the “Triangle”;

* Break below the round number at $6,500 which has held us nicely through the time but currently is like a warm knife through the butter;

* Break below from strong support area at $6,460, the same story as at $6,500;

* Break below from the major counter trendline;

* The price structure has made a new lower low (LL on the chart).

So, all the important levels are cracked and the four-hour candle close confirms that move.

Currently, the price almost touched the next strong support area at $6,250 and this ‘almost’ is a bad sign because, at the moment, the bounce came from almost nowhere, and what we need now is a good and clear support level. So, despite a small bounce upwards, we think we will see another leg downwards to at least $6,000, and if it is not a bear trap, then probably even lower. What can save us from a catastrophe if it is a bear trap is the bulls — bullish market makers, not us, retail traders — being able to push the price back up today or tomorrow.

Our recommendation is to stay away from the market since it is definitely risky to invest somewhere now because the down pressure is very high and even if it is a bear trap, nobody can forecast it. Let things settle down, be cautious and remain a neutral observer.

Ethereum (ETH/USD) hanging above the round number

The market is full of panic and so is Ethereum. ETH had a more than 11 percent drop and currently, it has found a support from the crossing area which consists of ‘longer and smoother trendline’ and the round number $200.

Ethereum trades again below the short-term counter trendline. The price structure has changed, several previous higher lows are history, and we have a new lower low on the chart.

If Bitcoin starts to make another leg down, ETH is in a big trouble, and if the next support level at $193 doesn’t hold us then we go and retest the 2018 low level at $167. Before that, it does not have any significant supports to stop that price, so watch what BTC does.

RIPPLE (XRP/USD) can make a big drop

As you might know from our previous post, there was a red box which confirms bearishness if we got a candle close below that area, and so did we and after the market drop, we came down pretty heavily.

Currently, the price has stopped on the counter trendline which is pulled from the peak. It is not a confirmation since this trendline is too sharp but still. It has made a new lower low and is approaching the round number $0.4.

As we’ve mentioned earlier, the $0.4 area is quite a significant level: the round number itself has to work as a support and from the peak Ripple has dropped around 50 percent. This 50 percent is usually a good bounce level but currently, we can’t say that we get a bounce from there: probably BTC has another leg down ahead and this move may drop XRP pretty heavily to the bottom. Recently, Ripple has made highest gains, and now it can make the highest drop, so watch it and Bitcoin closely: if the latter shows move upwards from supports then XRP has a good bounce area at $0.4.

If the $0.4 level breaks then the next support would be the major down-trendline since Feb. 17, 2018, at $0.35. It is not a very strong support, definitely it could go lower,  but currently, it’s very hard to tell where the Ripple lands. So, one more time, please be cautious and stay away from the market.

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About the author

Vaido Veek hopes to become a leading voice in technical analysis by educating people about how the perfect TA  should look like. He has over 5 years of charting experience and loves to solve the patterns that   they show us. His slogan is "keep it simple"!

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Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

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  • Joseph Young
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    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
Cover image via 123rf.com
Contents

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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