The Daily Cryptomenon
16th October 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
This analysis was written at 9:00 am GMT +3, on 16.10.2020
The day started off on a good tone for the Cryptocurrency market, but soon enough news came in and shattered the good effort forcing Cryptocurrencies lower. The main reason for that comes from the world largest Cryptocurrency exchange that stopped withdrawals. With that said, let’s find out what today holds for the Cryptocurrencies on October 16th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - are starting off their Friday on the worst possible note as they all are witnessing increased bearish pressure as all Cryptocurrency holders are liquidating their holdings from the recent news that OKEx has frozen withdrawals.
Bitcoin had broken above the $11,600 late last night but was quickly rejected from that level and was hovering around the $11,500 level when the news hit and forced the Cryptocurrency to surrender gains falling towards the $11,250 before bouncing just a slight bit higher.
Ethereum was also affected by the news of the exchange freezing withdrawals causing ETH to be forcibly moved lower with everyone liquidating their assets. Ether has managed to jump back from $360 as it trades near the 100-SMA on the 2-hour chart as market participants digest the news.
Ripple wasn’t removed from the equation either as it also faced the wrath of investors pulling out and forcing the Cryptocurrency to fall towards the $0.2400 allowing the bearish bias to continue.
Bitcoin’s (check out the chart below you’ll find that Bitcoin is the purple line) performance was hit hard by the sudden news as it records a drop towards 5.04% on a month-to-month basis*. Ethereum (red line) followed in the footsteps of Bitcoin as the news didn’t just affect BTC, but all Cryptocurrencies forcing ETH’s performance to drop towards 3.15% on a month-to-month basis. Ripple (turquoise line) continues to experience the worst downward move, with the current news aggravating the already bearish trend. Performance was hit as it records a 0.37% on a month-to-month basis.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 1st September till the 1st October.
What’s the strategy you’re going to use when it comes to these cryptos? ? Is there going to be more regulation on Cryptocurrencies? Or is there something else that’s going to be resolved soon? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin's Falls $300 Due to Lack of Withdrawals
Bitcoin has rapidly corrected lower in the past hour. In the span of thirty minutes earlier this hour, the leading Cryptocurrency slid from $11,520 to a low near $11,200. Bitcoin has since recovered to $11,275 as buyers have stepped in at those pivotal lows, an important region of technical support. The Cryptocurrency has gone down by 2% in the past 24 hours after this correction. Altcoins are underperforming the leading digital asset, with Ethereum losing 3% as other Altcoins fall even more.
The move lower comes after it was revealed that OKEx, a leading Cryptocurrency exchange processing billions in volume, had frozen withdrawals. Announced just an hour ago, leading crypto-asset exchange OKEx has frozen withdrawal of all Cryptocurrencies, from Bitcoin to the Altcoins it supports. In an announcement published to the company ZenDesk, OKEx stated that “one of our private key holders is currently cooperating with a public security bureau.” The company has not been able to contact the holder, currently unnamed, and thus are unable to send out withdrawals securely.
The market dropped seemingly because some fear this may be a sign of increased regulation of Cryptocurrencies. Skew.com, a crypto derivatives tracker, reports that $6 million worth of Bitcoin longs has been liquidated in the past hour alone. This metric only pertains to BitMEX, suggesting that millions more were liquidated across other platforms.
Ethereum to Retrace Higher After Fall
Ethereum was seen trading with some tepid volatility within the 24-hour price chart; the coin varied between the $377 to $385 price range. While the instrument was trading in that normal range, the news came out from the market about the recent withdrawal freezing and that caused Ethereum to drop severely as it reached the $365 support level.
The MACD shows decreasing bullish momentum, which is a very worrying sign. Plus, to give further credence to our bearish outlook, the daily confluence detector shows a clear of strong support on the downside. The 50-day SMA, 100-day SMA and 200-day SMA can act as sound walls against the price drop; however, they may not be able to absorb a sudden spike in selling pressure. As per the daily confluence detector, a severe downturn can cause the price to plummet down to the 200-day SMA ($280).
The Bulls will need to break above the $385 resistance line before it continues to inflict heavy damage on the price. Even if they manage to break past that, there is another strong resistance at $390, limiting any upward movement. However, if they do manage to break past these two obstacles, they can take the price up to $425.
Ripple Bulls to Focus on $0.2500
A descending move led the XRP price towards the $0.248 level on the 14th of October. The Ripple price prediction by YM Group suggests an ascension that will lead the price towards $0.254 next. The price gradually stepped towards $0.245 and has held this level for the 15th of October.
However, all of that was gone to pieces especially after the market was fraught with news that OKEx was freezing all withdrawals for the time being without offering any kind of reasonable explanation, quoting their Terms and Policies that they had the right to do so at any time. So the fear of more regulations on the Cryptocurrency market hit XRP hard forcing it to fall towards the $0.2400 and even lower but the Bulls were able to rise back up.
The Relative Strength Index (RSI) holds above 30.00, which means that the Cryptocurrency is deep into the bearish zone and that means more downside bias, however, with oversoldness right around the corner, we can expect a move back higher as Bulls will need to target the $0.2500 in order for the original bullish momentum to continue.
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