Roller coaster days… Since our previous market update, the support around $ 4,300 has been broken as we all know. In addition, the rumors from China continued to reach out the market and influence what came out to a very sharp deep lasted for 48 hours that was a major correction in a high trading volume. The correction was followed by a massive panic and uncertainty. It had reached $ 2972 at its low, for a very short while (Bitcoin lost around $ 1,300! within two days).
The entire crypto coin market was influenced by negative news came from China. Some of the rumors were that the Chinese government would block Chinese people from using Bitcoin, following the Chinese decision regarding ICOs. In addition, JP Morgan’s executive Jamie Dimon was quoted as saying that the Bitcoin is “one big fraud,” that statement was posted among major press resources and added more fuel to the fire and panic to the market. Currently, the market is settling at $ 3600-3700 levels.
After a period of about two weeks that the Bitcoin’s value held over $ 4,000 and even was very close to $ 5000, it seems very far and tough to get back to these high levels. The impact of the news from China has also been in the past (major correction from ~1150$ to 700$ in 2016), but it appears that this time, following the restrictions regarding ICO, there will be a substantial intervention by the Chinese government according to the use of Bitcoin in the country.
If we thought we had not enough action, November is coming, and the crypto market is waiting for further events regarding the November fork (the New York agreement). A lot of fake news is finding its way to the market. Some of this news goes beyond the rumor level and become real articles on leading press. Despite all of the above, the Bitcoin graph is still very positive since the beginning of the year.
The value of the crypto market reached an all-time high of 177 billion dollars and corrected sharply in the last two days, losing about a third of its value. At present, the market cap is around $ 120 billion:
Support around $ 4300 has been broken and can be seen in the following graph – a resistance line from August has been identified as support for this range. After a short visit to the $ 3000 area, we had a fast correction back to 3600-3700 area. The strong support lies around $ 3200. The resistance level is around $ 3800, resistance is very close. If we break, we might return to the $ 4000 area.
Maintaining stability around 0.069BTC level with slight breaks to 0.067 areas. ETH appears to be very stable recently. The RSI indicator is very low. ERC-20 ICOs on Ethereum network is still very popular among the last ICOs.
ETH – USD: the effect of the Bitcoin correction is significant. The graph forms a large M shape, which is a pattern that indicates on negative behavior to come. The nearest support is $ 250. The strong support of $ 300 was broken and turned into resistance. When Bitcoin touched its low level during yesterday’s correction, ETH was at its low of $ 200. Where we head to now? Resistance is very close to $ 280 level.
One can not ignore the serious project carries huge hype, parallel to the NEO “Chinese Ethereum”. OMG is building their own platform over an Ethereum blockchain that is basically a banking system and payment solution over the blockchain.
The OMG value has been steadily rising since August and is less affected by what is happening to Bitcoin. There seems to be a high demand for the coin, even the founder of Atrium, VItalik Buterin, was observed wearing an OMG T-shirt.
The coin is being traded around 0.0027BTC level. The resistance line that broke out at 0.002BTC have become support, and the strong support nearer lies on the 0.0025BTC areas. Serious resistance lies at 0.003BTC.
Poloniex exchange has added OMG in recent days, along with CVC and GAS. Poloniex does not add a lot of new coins frequently.
Vs. Bitcoin, the value of DASH has been very positive lately, with slight corrections to 0.08BTC. Resistance lies in the 0.09BTC area. if we break – we might dream of returning to the beginning of the year’s all-time highs around 0.12 BTC levels.
Vs. the USD, under the influence of the Bitcoin’s correction, we saw a correction of Dash but it seems there are buyers and the value is now back up and close to $ 300. This is after visiting $ 400 level when Bitcoin was traded around $ 4,000. In addition, the British exchange Cex.io has added DASH for trading recently.
