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BTC on its way back, others are following the trip.
By: Ahura Chalki
Unlike Q2, in the current quarter BTC and major cryptocurrencies, including XRP and ETH, losing their gains.
A huge trove of documents from the Financial Crimes Enforcement Network (FinCEN), dubbed the FinCEN Files, found its way to investigative journalists throughout the world this month, and the focus was clear: illegal activities gone unnoticed. (CNBC)
Cryptocurrencies always used to be accused of money laundering and the current situation in financial enterprises that caused a hard hit on the first day of this week pushed the crypto market as well. Monday Barclays (LON: BARC), Deutsche Bank (DE: DBKGn), and ING (AS INGA) lost by 5.4%, 8.76%, and 9.27% respectively. Between the Major Cryptocurrencies also, BTC lost 3.10%, ETH was down by 5.9% and Ripple lost 5%.
On the other hand, generally, all other markets also had a very bad day. Except for the Japanese market which was closed (remains close today as well), all Main stock exchanges closed in red, in Asia, EU as well as the US. Money flows to safe Note and Bills.
Fundamentally, getting closer to the US election with current mass there between the parties and candidates, besides serious worries about the new infected of the virus, mostly in the EU, encouraging the investors to think twice before involving in any new position.
From a technical overview, the first three digital currencies have almost the same situation. In the daily chart, the price remains under Main MAs, while RSI at 41-3, supporting the downtrend line of OBV.
For BTC, while 20 DMA at $10.8K is the first resistance, the support levels after 10.2K (Monday low at 10,170), sits at 9.8K (Sep 9 Low), breaking these level lower, confirms a fresh downtrend in mid-term.
In the Daily chart of ETH, RSI at 43, and the market volume is raising, while the price is under the main MAs and OBV trendline, the downtrend remains powerful, still. Immediate support sits on 50 DMA ($354), above that 20 DMA at $374 is the second resistance, while in continuing of the current trend, breaching under $322, (7&9 Sep) will keep the bears in the power for a much longer time.
In the daily chart of XRP, $0.2438 is the key resistance, where the 50 and 20 DMA sits on each other. RSI at 40, while price under the main MA’s and OBV trend line, support the current downtrend and the continuing current downtrend found the very strong support at the $0.2250, where currently it is there. Trading stable lower than this level keeps the bears stronger in the chart.
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