In the middle of last week, the cryptocurrency market collapsed once again. After a flat-shaped rise, major offers for sale appeared for most top coins at the peaks of this growth. On October 11, following yet another downward rollback, bitcoin’s exchange rate did not hold on to a key point of $6,500 and turned downwards. The price collapsed by 9%, falling from $6,600 to $6,000. The fall in bitcoin exchange rate was simultaneously echoed by (ETH/USD), (XRP/USD), (Bitcoin.Cash), and others, some of which fell by 15-18%.
On the day of the downward trend, the U.S. Senate Committee held a meeting on the topic of cryptocurrency, which was attended and severely criticized by the professor of economics- Nouriel Roubini. Nuriel, as expected, spoke against bitcoin, saying that it does not scale and the transfer fee is more than $50. But what Roubini failed to mention is that such a commission was only seen in January 2018, and after that it dropped to $1. The cryptocurrency community does not seem to take the statements of the professor seriously.
Technical analysis shows that bitcoin formed a flat down wave, which is being built-up after a fall in early September. The next flat wave may become a reversal of a pullback to the downward movement from $7,400. The scale of the fall, when it turns down may be no less than the one seen on September 5-7, as many customers have accumulated in the flat, which has now lasted for more than a month.
In most cases, the exit from a flat generates a tendency. Therefore, buyers may incur losses in the region of ten percent. Most likely, their protective orders are located below the minimum of $6,100. At the peak of the recent fall, interests were divided: Binance and Huobi's demand grew, and on the contrary, on Okex and Bitfinex the volume of offers has increased.
Nevertheless, the advantage was on the side of buyers and the rate has so far bounced upwards. At the peak of the upward correction, its clear how the supply increased on the two largest exchanges. The long-term volume of buyers is located in the region of $6,100. Until a turn around occurs at this level, the price will continue to move sideways at the very least.
Prior to the general fall, the Swiss bank Dukascopy launched ethereum (ETH/USD) trade pair with a leverage of 1:2. Since the beginning of October, the price of ether has formed a pullback in the direction of a rise and after reaching the highest volume of sellers at $230 it jumped back down. In the previous analysis, it was determined that any and all growth that followed the end of September is likely to be a correction.
The current fall can be subillus in a downward movement with a minimum goal of $170. Although at the peak there was an increase in demand on the Bitfinex and Huobi exchanges, more appear during the formation of a rollback of supply. The bulk of buyers who have invested since mid-September are so far holding on to their positions, but, most likely have put up protective orders around $180. Therefore, if the rate of ether turns down at this level, it will move in the direction of the autumn minimum.
XRP never managed to consolidate at $0.46. Growth of no higher than $0.5 indicated a clear advantage of sellers. The downward trend from $0.78 is still a correction of growth from $0.25. After rapid growth at the end of September, the coin lost more than 50% in value when it rolled back, and this is not the limit for correction.
The largest volume of buyers is below the inclined channel. Therefore, the rollback on Ripple can continue all the way to $0.30. It can be seen how, at the peak of the current fall, there was an increase in demand (green columns) on Bitfinex and Huobi exchanges. After climbing to $0.43, large sell orders appeared on Binance. Judging by this picture, we can assume that if the price of XRP falls again, the channel breakout will be false. In order to change the downward trend, the price should form an upward reversal in the area of sales volumes at 0.46. Otherwise, there will be a rebound in the direction of a fall and the decline will continue.
Cryptocurrency exchange of the Winklevoss brothers Gemini is going to launch bitcoin cash on its platform. The company is awaiting hard forks on the coin, which will occur on November 13, and after that, it will make a final decision. In the meantime, brothers do not consider BCH to be a safe coin. After a two-week flat-bottom recession, the rate chose the option with an expanding flat. The price did not manage to turn up at key levels and the emergence of fresh supply has collapsed the price.
The rate of BCH/USD has reached the highest level of purchases that have been formed since mid-September, but the flat bottom has not yet been determined. The range where the border may form is stretched all the way to $320. Therefore, this will be the minimum target for any short-term downward trend. The fall will continue as long as its structure is maintained. Supply has increased on the four largest exchanges over the past few days. If this situation continues, the price will decline even further.
This also applies to other cryptocurrencies, but there are still prerequisites for growth. From October 3 to 11, the total capitalization of the stock market fell by 4%. Observations show that a similar dynamic within the cryptocurrency market in the past has resulted in medium-term growth.
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