Waiting for a miracle from the SEC: a weekly review of cryptocurrencies
The past week showed the crypto community that coins still have room to fall. The beginning of the correction was supported by the publication of the opinion of analysts at Goldman Sachs, according to which digital money is still extremely overvalued. Lack of collateral and low growth in market share have resonated with users around the world.
To others the factors that supported the correction can also be attributed: the escape of the CEO of Sky Mining, who took with him $ 35 million; criticism of cryptocurrencies by twice Nobel laureate Paul Krugman; burglary rumors «unbreakable» McAfee crypto wallet; suspension of registration on Bithumb.
However, there were also positive moments. Intercontinental Exchange (ICE) has officially announced the start of work on the Bakkt project, thanks to which it is planned to withdraw cryptocurrencies from the shadow of fiat. As conceived by the creators, with the help of the new platform, world famous organizations will be able to significantly simplify the settlement system. Crypto users will be able to spend their coins, which will later be converted into the currency required by the company.
An additional positive note last week was the publication of news, according to which the notorious Mt. Gox will still start reimbursing funds to its users, but this will not happen until 2019..
Recall that today the main issue is the result of the SEC’s decision on the CBOE and Bitcoin ETF.
How the market performed in the past seven days, and what prospects open up before him on the eve of an important date, find out from our review.
A correction has come, which, under pressure, was able to take Bitcoin slightly below the expected course. Despite the already quite strong fall, there are still prospects for the coin in front of the coin for further movement in «bearish» trails.
The expectation of a decision on August 10 from the CBOE literally put the market in a state of uncertainty: after the growth, the coins show a desire to continue the correction, however, the move to the lows restrains the positive outcome of the ETF. IN statements from insiders began to appear in the press, according to which the SEC is interested in a positive decision. Since there is no exact data, the only thing that crypto traders can rely on, — belief in the accuracy of information.
In the meantime, the Ichimoku cloud shows the possibility of a slight increase, which is likely to be intercepted by the continuation of the correction according to the three variables. Possible options for the further course of bitcoin include the following.
The overall negative pressure can be diluted with a small rally, after which the price will go on a further journey along the downtrend.
In case of deterioration in the news background, corrective growth risks being minimal. Following it, the price may accelerate the fall.
However, the presented scenario may change through the publication of data on preliminary decisions of the SEC. Additional adjustments will overtake the market this Friday (August 10 — the day of the final ETF CBOE solutions).
While Roger Ver is trying to negotiate with the South Korean authorities on the promotion of cryptocurrencies and Bitcoin Cash, the currency continues to decline under pressure «older brothers».
It is noteworthy that at the moment the variables on the chart are coming out of the sideways, which could have become a cumulative element. After that, the energy will be spent on movement in the chosen direction. Ichimoku clouds also do not prepare a positive outcome for the coin..
Here are some options for the price movement.
Probably, on the eve of October 10, the price will run between stable levels, which «caught» her at the exit from the side.
If negative news comes out after a collision with stable levels, the price may continue to fall to new lows as part of a correction..
The collaboration with the Minds + Machines Group has brought Ethereum users the opportunity to simplify the process of working with identifiers. However, despite this, the coin significantly lost in value..
At the moment, the indicators indicate the presence of strength to continue the decline. The variables began to expand after the sideways trend, complementing the Ichimoku cloud readings, according to which the overall mood of the coin will be negative in the short term..
The options for the development of events are as follows.
The presence of a general negative trend may continue near stable levels, which are able to somewhat delay the general decline.
After a protracted negative trend, a corridor may open for a surge in buyers’ energy, which, against the background of the general negative market, will again become part of a downward trend.
Last week it became known that the ideological mastermind of Litecoin Charlie Lee became the advisor of a new crypto smartphone from HTC. However, the news could not save the coin from the general oppression of the market..
At the moment, the expansion of the gap between the variables, as well as the readings of the Ichimoku cloud, indicate the inevitable continuation of the fall. The most likely trajectory is marked with a pink branch..
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The last good news from the cryptocurrency developers was the collaboration with Tradecore, a software company. It also became known that transactions with cryptocurrency can now be performed using SMS..
The position of the graph demonstrates the decisiveness of the coin in matters of descent to lower rates. The most likely trajectory is marked with a pink branch..
To conclude our market overview, we will tell you about an unusual bitcoin fork. — Bitcoin Diamond. About how close this coin is to its name and its prospects, we asked Sergey Kovtunenko, Executive Director of Zichain, and Alexander Kuptsikevich, financial analyst at FxPro:
— The purpose of the cryptocurrency is the same as that of the original bitcoin. It is a means of payment with which you can pay online.
When the fork occurred, the coin token was credited to all Bitcoin holders. The holder of one bitcoin received 10 BCD tokens. The maximum number of BCD tokens cannot exceed 210 million tokens, of which 170 million tokens were issued immediately and distributed among bitcoin holders. At the time of the chain split, 17 million BTC tokens were mined.
The capitalization of Bitcoin Diamond is $ 250.578 million, and this puts the coin in 43rd place. The cost of tokens from the moment of listing on crypto-exchanges has been constantly decreasing. If at the time of launching into circulation immediately after the fork, the rate reached levels of $ 91 per 1 BCD token, then at the time of preparing the review the coin is quoted at $ 1.63, that is, the rate fell 55.8 times in dollar terms. In relation to Bitcoin, the Bitcoin Diamond rate is 0.00023. Diamond decreased 43 times to the price of bitcoin over the specified period, which indicates the reluctance of market participants to buy this token.
If we exclude short-term non-market fluctuations in quotations with the aim of «pumping» prices, we conclude on a further downtrend of the Bitcoin Diamond token paired with Bitcoin in the medium and long term, — says Sergey Kovtunenko.
— Bitcoin Diamond has recently been seen on pumps and dumps, roughly the same attitude towards it in the crypto community. Two of them happened very recently. On July 9, the trading volume of the coin soared by almost 4000%, the price doubled to $ 4. On July 23, there was a similar pump, but without the same impressive growth in trading volumes, and more it was already associated with the growth of the original bitcoin.
In theory, BCD appeared to solve the problems of BTC: the high cost and slowness of transactions, now all this is not, therefore, the coin will become relevant again in the event of a rally in the reference bitcoin and the return of questions to scalability and transaction speed.
The coming week may be associated with a new correction in Bitcoin and the entire altcoin market after it. Against this background, BCD is unlikely to withstand the onslaught of the market and will also sag. Already, Bitcoin Diamond is trading at historic lows of around $ 1.60, it is likely that the coin could show further drawdown to $ 1.50 due to the BTC pullback after a failed rally, general disappointment, and lack of meaning for the existence of BCD..
Most of the cryptocurrencies are currently used for speculative purposes, BCD is no exception, and given the specific attitude towards the coin, formed in the wake of the emergence «shit-forks», the downward pressure may be even more severe than with respect to other altcoins, — believes Alexander Kuptsikevich.
Thus, the market froze in anticipation of August 10th. A positive SEC decision could open the way for cryptocurrencies to another wave of growth, which will be able to overcome the negative sentiment «bears».
text: Evgeniya Likhodey, graphics: Investing, photo: Annegru / Pixabay