Cryptocurrency Price Analysis - September 24-30

The dynamics of the cryptocurrency has stopped. When is the new breakthrough coming?

At the end of last week, more than ten U.S. congressmen sent a letter to SEC chairman Jay Clayton, asking him to explain in plain language how he plans to regulate crypto-currencies. So far, the securities commission considers this class of assets as shares and applies laws to them that apply to the securities market. Congressmen, in their letter, explain that bitcoin and ether are more of a commodity than a stock. In June this year, Clayton has already stated that he is not going to change the rules of regulating cryptocurrencies.

Venture capitalist billionaire Tim Draper didn’t think regulators would create ambiguity with respect to coins, but he still expects bitcoin to reach $ 250,000 in 2022:

In a recent interview with Forbes, the investor said that majority of cryptocurrencies are copies of bitcoins, which have no reason to exist. After 15 years Tim predicts total capitalization to increase by 300 times.

Meanwhile, bitcoin’s rate forms a flat near the upper boundary of the convergent triangle, which also resembles a triangle, but on a short-term scale:

Following the recent rise, the price of bitcoin failed to reach the upper limit of the long-term triangle and began to correct itself. The downward movement from $6,800 is a rollback, as the rate is not facing down in the $6,500 area. As was said in the previous analysis, at this level most of buyers' transactions were determined. A turn at this mark would have mean an advantage being passed over, and after a break of $6,400, the rate would have collapsed because of protective orders. Instead, new buyers appeared at $6,400. By the classical technical analysis, just below the border of the short-term triangle, new sellers will appear.

From a technical point of view, the bitcoin (Bitcoin) chart forms a flat with $6,400 - $6,800 as boundaries, and a break in the lower boundary of the triangle occurs at the lower part of the flat. Therefore, the probability of a rebound, in this case, is rather high. For there to be a clear advantage for sellers, the rate should turn down at $6,400, then the September minimum will be updated. If there is no turndown, a new rebound will occur at the upper limit.

As expected with ethereum (ETH/USD), the price stopped in the area where the largest purchases took place at around $200:

This rebound is a confirmation that buyers are still retaining their positions and are counting on further growth. The American exchange of cryptocurrency derivatives LedgerX and the Chicago Option Exchange (CBOE) are preparing to launch futures contracts for ethereum. Last year, LedgerX has already launched bitcoin derivatives. The launch of the futures on the ethereum will depend on the decision of the SEC on October 5.

But near the level of $230 a large volume for sales occured. Because of this and the flat-shaped growth, there is a possibility of another fall to $200. Mark of $200 has been acting as support for all growth since early September. If it turns down, the advantage will shift in favor of sellers. With this option, the "minimum" will be updated.

The Japanese group - SBI Holdings, which has been providing financial services for 20 years, received the approval from the Japanese regulators to launch a joint venture with Ripple called "SBI Ripple Asia". The price of the coin (XRP/USD) after showing a growth of 180% during the previous weeks is now forming a flat:

The price of the XRP cryptocurrency broke through the key level of $ 0.53 but did not turn downwards. The absence of a break in the trend at this point means that the advantage is still reserved with buyers. Below $0.53, there was a large volume of purchases, because of what which an upward flat wave was formed. This is a flat wave since when the price reaches $0.63, it’s likely to roll back down again. This is due to the emergence of sellers who are trying to catch a peak, and also due to the buyers who have unsuccessfully opened deals and are leaving after breaking even.

Overcoming the $0.63 mark is more likely to trigger a new upward trend. For this, XRP rate needs to break through $0.63 and not return to below $0.53. Such a structure will speak in favour of the buyers. Thus, the $0.53 mark becomes a support for growth from $0.43. During a hypothetical fall to that level, the flat will continue at that level.

The dynamics of bitcoin cash last week changed in a very positive way. The rate never managed to turn up to $500, which caused a rebound to the nearest support level.

The wave up, which formed from $400 to $500, is part of the expanding flat, the most unpleasant flat for traders. On the one hand, there is a clear upward momentum within the chart, but on the other, the (EXANTE: Bitcoin.Cash) price may collapse again.

An increase in the market supply, which has been rising steadily during the last couple of days, speaks in favour of a fall. For confirmation, a spread in the buyer's area at around $500 will be needed. Levels often change places and in this case $500 turned from resistance into support. If there is no reversal, then continuing growth will be the most probable outcome.