Home Daily Analysis Crypto Market sentiment Daily Crypto Brief, August 16 – Bounce and Downward Continuation!

Daily Crypto Brief, August 16 – Bounce and Downward Continuation!

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Yesterday all cryptocurrencies bounced off sharply with the bitcoin coming from a 4% loss up to a 4% gain and climbing to the $10,400 level. The outlook changed early morning. The majority of cryptos is falling again, with the Bitcoin returning most of yesterday’s gains to the market and descending below the $10,000 mark.

Total Crypto sector market cap is currently at $259,038 billion, and Bitcoin dominance 68.4%.

 

Below the total heat map for the last 24 hours.

What is Happening?

A Chinese Ponzi Scheme Said to have been the cause for the latest cryptocurrencies sell-off. According to a cryptoglobe.com article, a 70,000 BTC Plus Token scheme, worth 3 billion, is impacting the bitcoin prices. Regular 100BTC sells on Binance and other exchanges that traders call whale traders, is impacting the price since July.

Dash has released Core v0.14.0.3, a new version of the wallet and client for DASH. This is a security upgrade to close recently exposed vulnerabilities. In a post on August 15 Dash explained the update. Source: contelegraph.com.

Coinbase becomes the largest crypto custodian. US-based Coinbase announced that it had acquired the institutional custody business of Xapo.  That means Coinbase is currently holding the custody of over $7 billion in assets on behalf of more than 120 customers around the globe, becoming the most significant institutional custodian for crypto assets in the world. Source. cryptoninjas.net.

Bitcoin peer-to-peer exchange Paxful getting a big increase in trading volume last month, supposedly from “institutional clients”, as revealed its CEO, Ray Youssef. According to Youssef, 70% of the surge in bank transfers to Paxful’s platform was due to “smaller entrepreneurial financial institutions”. Source: decrypt.com.

Technical Analysis

Bitcoin


Bitcoin jumped up yesterday, but its progress ended at about $10,400. Today is backtracking that path and is hanging below $10,000. Its MACD is bearish, but Stochastics is trying to make a bullish turn. We have to observe how today’s daily candle closes.
Bitcoin may be attempting to find a floor near the bullish trendline (blue). That may be very important for bitcoin and cryptos since the bullish trend started in December 2018 would remain active.
The other scenario is the bitcoin continuing its decline to $9,000 and test the lows made on July 17.

Ripple


XRPUSD remains controlled by sellers. Its 0.24630 support is the latest one before the bottom reached on August 17. MACD’s histogram display increased bearishness. Stochastics appears to indicate a period of consolidation of the current loses. The overall perception is obviously bearish.

Ethereum


After yesterday’s bounce, Ethereum keeps descending. MACD is still showing its bear stage. Stochastics also points to more declines. If $180 support is not held, the next support will be $152. The nearest resistance level is $190.

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