fbpx

Crypto Daily Market Commentary – 26.09.2019

Crypto Market Overview

After yesterday’s crash, the markets have remained fairly calm as bitcoin entered a consolidation phase at around $8,300. How long this consolidation will last, remains to be seen. Currently, there is a lot of indecisiveness in the market with low volatility and low volumes for most cryptocurrencies. As the price ranges, in which the cryptocurrencies trade, get tighter and tighter, a further decline in price seems possible. In the last 24 hours, BTC lost 2.5% and trades currently at $8,376. As opposed to the other top 10 cryptos, XRP seems to be recovering faster with +2.33% and Stellar XLM with +6.43%.

Binance announced yesterday through a company blogpost that it listed 5 altcoins on Binance.US, its US exchange: Cardano [ADA], Basic Attention Token [BAT], Ethereum Classic [ETC], Stellar [XLM] and 0x [ZRX]. As it is very common for cryptocurrencies to experience a price surge whenever big exchanges like Coinbase or Binance announce the listing of new coins, we assume that XLM’s price increase was related to the announcement.

The overall market capitalization of cryptocurrencies dropped by another $5 billion and is currently at $220 billion. Bitcoin dominance decreased slightly and is currently at 68.5%.

Bitcoin [BTC]

After trading within a descending triangle for the last couple of months, a fourth retest of the supporting orange trendline at the bottom of the wedge didn’t hold and bitcoin ended up freefalling for 2 hours straight. Stops were triggered across all exchanges and for a few minutes bitcoin even traded at $7,600 levels, exacerbated by forced liquidations of long positions at various exchanges – street whispers of liquidations north of US$500m occurred on BitMEX. Considering that BTC had been trading in a range for the last two months resulting in declining realized and implied volatility, options traders may well have been caught short gamma just three days out from the nearest expiry, further magnifying the downward move. BTC has bounced back ever since and is currently finding support at the 200 SMA (purple line) without being able climb above the 200 EMA (red line). If the 200 SMA fails to support the price, BTC might continue its downfall to the 61.8% Fibonacci retracement level, which is around $7,400.

A look at the bitcoin hourly chart reveals that BTC tried to break above the 25 EMA but got rejected to $8,300 levels. As of now, $8,200 has become some sort of support, as it acted as a critical resistance level for three times back around mid-May this year. As volumes remain low and bitcoin is making lower highs since yesterday, a break to the downside seems very likely after a short consolidation phase.

Ethereum [ETH]

Ethereum’s hourly chart is almost identical to that of bitcoin with the only difference being the price levels. Equally, ETH tried to break above the 25 EMA but wicked back below to $168 levels. Key levels are $162, the bottom wig of the daily candle on Ethereum’s daily chart on the 29th of August and 6th of September, and $156, the 78.6% Fibonacci retracement level. With bitcoin dominance close to 70%, both BTC and altcoins are highly correlated for the time being. Thus, ETH as well as all other top 10 cryptocurrencies are very likely to follow bitcoin’s moves.

Top Movers

It is noteworthy that Tether [USDT] surpassed Bitcoin Cash [BCH] in terms of market capitalization with $4.1 billion vs. $4.0 billion. This move is not very surprising, as many traders exit their trades and park their funds in USDT until certainty is restored in the market. Although Tether has made it into the news several times in the past with rumors claiming that the USDT tokens are not fully backed by actual USD it’s meant to be pegged to, it still remains the top hedge for traders as it has the longest history and is among the most popular trading pairs on all crypto exchanges. Additionally, Tether recently “won” a decision in their case against the New York Attorney General’s Office that they could pause the handing over of documentation used in the case against them.

Today’s top gainers are 0x [ZRX] with +11.26% and Aelf [ELF] with +11.02%. ZRX is among the cryptocurrencies that were listed on the Binance.US exchange, whereas according to an official tweet by the company, Aelf partnered with reputable industry players such as Huawei, Microsoft Azure, and Amazon Web Services (AWS).

The top losers of the day are V Systems [VSYS] with -7.58%, Algorand [ALGO] with -6.99%, and ICON [ICX] with -5.76%.

News of the Day

  • Litecoin Prices Decline To Lowest Since March – Forbes
  • ‘Striking’ Bitcoin Market Manipulation Warning Issued – Forbes
  • The Real Story Of The Repo Market Meltdown, And What It Means For Bitcoin – Forbes
  • Bitcoin Has Crashed – What Now? – Forbes

Disclaimer

Forbes Digital Assets

Research Team

research@forbesda.com

646-450-8808

Forbes Digital Assets does and seeks to do business with companies covered in ForbesDA Research. As a result, readers should be aware that the firm may have a conflict of interest that could affect the objectivity of Forbes Digital Assets Research. Investors should consider ForbesDA Research as only a single factor in making an investment decision.

Also interesting

Leave a Reply