The beginning of last week was marked by preparations for the SEC’s decision on Bitcoin ETFs. According to opinion leaders in the cryptoindustry, worries about this matter do not carry weight. The reason is that this decision is significantly inferior in importance to another — ICE began collaborating with giants such as Microsoft and Starbucks. As part of the joint work, it is planned to simplify the process of accepting and converting digital currencies for businesses. However, the news of the postponement of the event from August 10 to September 30 still shook the market. Major cryptocurrencies are heading downward — storm new lows.
However, against the general background of sales, news appeared that was able to stabilize the situation., — Tether has decided to admit to the market «additive» in the form of coins in the amount of $ 50 million.
While regulators are postponing dates, reserving the right to adhere to an observant position, and cryptocurrencies continue to demonstrate new facets of their behavior, we invite you to familiarize yourself with the results of the week, as well as learn about the prospects for the near future..
To build the charts in our review, we used the Fibonacci levels, thanks to which you can get an idea of the strength of the correction. An additional analysis tool is the indicator «Alligator», thanks to which you can see the strength of the trend.
Last week, the Bitcoin mining loss zone was affected, which varies in the range of 6000–6100, after which there was a logical rebound, which gave investors hope for the stability of the coin.
At the moment, the price is still within a protracted correction. The coin has already overcome a sufficient number of levels to be able to start talking about the imminent end of the fall. The negative market, the danger of going to even lower levels still persists. At the moment, there is a certain note of uncertainty: in order to start a new movement, it is necessary to get out of the formed small sideways trend. The probable routes for the further movement of bitcoin include the following.
Small growth caused by small improving market situation may turn into a new wave of decline, seeking to update the lows that are below the mining payback zone.
If, during the continuation of the growth, the price can gain a foothold above the nearest Fibonacci level, it will be possible to pay attention to the possibility of entering new growth waves. This maneuver will mark the end of the correction. However, the price is likely to meet resistance in the form of a stable level..
For the development of this scenario, it will be necessary to back up with positive news. The branch implies confirmation of the end of the correction through a rebound from a stable level and consolidation above the nearest Fibonacci level.
Last week, experts discovered a critical vulnerability in the Bitcoin Cash (BCH) code. This information allowed us to give more strength to the overall correction wave..
The further movement of the coin depends on the behavior of the older brother of bitcoin. If the correction is really left behind, cryptocurrency can exit it along the following trajectory.
After a rebound from a stable level, the price will have the opportunity to start an active growth wave.
Additional development scenario.
If there is no impetus for growth in order to complete the correction, the price may demonstrate a trajectory marked with a green branch.
The past week was not distinguished by bright events tied to Ethereum. The coin continued to move behind the market.
The protracted correction, apparently, has all the chances of completion. However, ether will have to wait for positive shifts from bitcoin, without the growth of which attempts to stabilize are meaningless.. Here are some options for the development of events.
If the correction still has a power reserve, the coin may roll back to new lows. Indicator «Alligator» indicates the presence of force to descend.
In the event of a positive impulse and growth, the coin is likely to rush upward through a stable level.
Last week it became known that from now on users will be able to send their favorite coins via SMS. However, the general oppression of the market did not allow the positive trend to be fully realized..
A protracted correction in the case of Litecoin, as well as with other coins, has every chance of completion according to Fibonacci. At the moment, the following development options are being viewed.
The indication points to a small sideways trend, which can turn into growth with a positive impulse.
If the market does not allow the growth to materialize, the coin will travel to new lows..
The coin continues to struggle to survive. Dash representatives are actively promoting their project in an attempt to reduce the negative impact of the fight against anonymity.
The Dash correction appears to be quite lengthy. The level of activity of sellers has the ability to give way to buyers. However, the outcome in any case depends solely on the general market sentiment and Bitcoin behavior. The options for the further move include the following.
The absence of a clear positive sentiment can lead to going beyond the boundaries of the nearest Fibonacci level, which will lead to the search for the next lows.
In the event of a rebound from the nearest stable level, the coin may get chances of going up. Subject to similar behavior on the part of Bitcoin.
To top it off, we bring to your attention a forecast for the Ethereum Classic coin, compiled by two experts: the executive director of Zichain Sergey Kovtunenko and FxPro financial analyst Alexander Kuptsikevich:
Ethereum Classic Cryptocurrency (ETC) : The Crypto No One Is Talking About!
— Ethereum Classic ranks 14th in the ranking of cryptocurrencies with a capitalization of $ 1.39 billion. Price per coin — $ 13.41. The dynamics of quotations over the past 12 months in dollars was -9%, since the beginning of this year: -58%, since the beginning of this month: -9%. The minimum quotation for 12 months was $ 8.65 on September 15, 2017, the maximum — $ 46.22 December 21, 2017.
In August, there was a short-term sharp increase in the ETS exchange rate — at 26–28% to values of $ 21 per token. On the positive side, the Skrill payment service has added support for Ethereum Classic and the UAE cryptocurrency exchange BitOasis announced that it has added this digital asset to the platform, allowing customers from the UAE, Saudi Arabia, Kuwait, Bahrain and Oman to buy, sell and trade ETC with zero transaction fees until August 31, 2018. And starting August 20, Seattle-based Bittrex users will be able to directly buy and sell Ethereum Classic for the US dollar. Thus, ETC joined «exclusive club» fiat-traded cryptocurrencies on Bittrex, which includes BTC, ETH, USDT, TUSD and XRP.
These are positive factors for the liquidity of the ETS and the access of more professional market participants to trading this asset. The latest news within the Ethereum Classic team is related to large-scale updates that developers are implementing in the platform to make it faster and more efficient, as well as to find a solution to the most important problem of cryptocurrencies at the moment. — network scalability.
Amid the ongoing «bearish» market surge of interest of participants in this altcoin is short-lived. However, the price range at $ 9 levels can be noted–12 per coin, which has shown stability in the previous 12 months and can be an attractive level for the formation of medium and long-term positions. It will be possible to talk about the resumption of a full-fledged upward trend after confidently overcoming an important resistance area at $ 18 levels–20 per token, — says Sergey Kovtunenko.
— Ethereum Classic rate and trading volumes depend on speculators. 7 In August, on reports of the placement of ETC on Coinbase, the rate soared by 38%, to $ 20, but by August 13, it again dropped to $ 13, following the general market correction. There is no separate dynamics of altcoins yet, and the crypto community believes that «winter of altcoins is coming».
This is not about a correction or depressive mood, but about the loss of faith in the future of digital currencies in principle, which means the disappearance of most digital assets, thus, only very few coins will remain afloat, and Ethereum Classic is among them..
ETC is now following a correctional market: it is unlikely that ETC will dip below current values within the current week, recovering to $ 15–16 and still ETC — this is a long-term investment, as the coin is likely to remain among the top 10 cryptocurrencies of the new digital money ecosystem, — believes Alexander Kuptsikevich.
There is an active struggle in the market «bulls» vs «bears». To determine the new scenario, some time is needed, which can show the intentions of the price to go beyond the indecently prolonged correction..
text: Evgeniya Likhodey, photo: Bloomberg, charts: Investing