After five days of advances for altcoins, a selling day is in development, and this time Bitcoin joined the party. Bitcoin dropped below $10,000 and is dropping 4.5% from its previous 24-hour value. Most of the altcoins fall similarly. The notable exception is Stellar Lumens (XLM) which advances over 15%. Market capitalisation is down to 262.252 billion, and bitcoin dominance is 67.6%.
Fig 1 – 24H Market Cap. Source:coinmarketcap.com
Fig 2 – Bitcoin heat map
What is happening?
Hong Kong-based CMCC Global, an Asian venture capital company, specialised in blockchain startups, will launch the Liberty Bitcoin Fund.
Grayscale manages $2.4 billion of Bitcoin for institutional investors (mostly in North America).
Now, institutional money in Asia can invest in Bitcoin too.
Asia's first institutional-grade Bitcoin fund just launched.
This is huge 🚀https://t.co/Hx9h2SBYev
— Kevin Rooke (@kerooke) September 19, 2019
Commission de Surveillance du Secteur Financier, Luxembourg’s financial regulator, has warned about fraudulent clone website which impersonates BitPay. More info by cointelegraph.com.
SEC Sues ICOBox and its founder for $14 million ICO in a federal court in California. According to the demand, ICOBox and founder violated the federal securities laws by selling tokens that were unregistered securities and acted as an unregistered broker. Source: theblockcrypto.com.
European Commission report Blockchain now and Tomorrow is very positive on the technology’s potential.
blockchain is now one of the technologies which is anticipated to have a profound impact over the next 10-15 years, backed in the short term by upward forecasts for investment.
Bitcoin weakness and altcoin profit-taking created a large candlestick with a large volume this early morning which drove the price from near $10,200 to $9,585, although currently the price bounced and is approaching $9,850.
We can see that the price action broke the triangular formation to the downside. Thus, a drop to the $9,400 level is not out of bounds. Currently, the price is holding above the $9,750 key level.
The sizeable bearish candlestick has overextended the price, so we expect a sideways consolidation seeking the Bollinger Band mean before more drops.
Another possible scenario is that this bearish action is a fake movement to shrug off the weak hands and continue an upward movement, since it is surprising that, after the tremendous advances of the altcoins this week, a prolonged bearish action would take place. Anyway, the current situation only points to downward pressure. To be bullish, we need to see evidence first.
After the huge 25% advances, XRP has retraced back below $30, and its price moved to near the Bollinger mean, which acts as a kind of fair price level. From a technical point of view, the price action is still bullish. $0.29 and 0.285 should act as supports.
Ethereum is retracing as is doing all altcoins. On the 4H chart, we can see that the price is currently holding above the projected Bollinger mean line which confluences with the $203 support level. The price seems to be starting a period of consolidation. $203 and $198 are the support zone for the ascending movement.
Stellar Lumens is moving up in a strong trend with huge volumes. Currently, it had a retracement candlestick but is currently overcome. Price action shows there is potential for more upside. The overbought condition is evident, but the buying pressure is driving it upwards.