After two days of gains today the Bitcoin and Altcoin are finding selling pressure, retracing some of the previous gains. Nonetheless, BTC is up 1.79% over its value 24H before. Litecoin is up +1.12% and Ethereum and Ripple break-even. Binance (-2.21%) is the single top-ten crypto to experience losses. The current market capitalisation is $268.586 billion, and the dominance of the Bitcoin is 70.5%.
The 24H heat map of the sector shows the current situation.
What is happening?
Dutch Central Bank, De Nederlandsche Bank, announced it would begin supervising cryptocurrency companies following the European directive on Anti-money-laundering AMLD5, which became effective last July. Companies providing cryptocurrency services should register with the DNB as soon as possible. Source: beincrypto.com.
Venture capital company, Anderson Horowitz, is lobbying for improving crypto regulations in the US. Several days ago Marc Andersen organised an event with several Washington regulators and during his speech he asked them to be more open-minded toward cryptos. Source: cryptoslate.com.
Crypto firm Elliptic raises $23 million in fundraising led by Tokyo-based SBI Holdings. The Founding was aimed at the firm’s expansion in Asia. Source: condesk.com.
Bitcoin volume in Venezuela surged to record highs, as the escalation of hyperinflation continued. According to Coin.dance website, volume on localbitcoins rose to a VES 116.8 million high ( $5.3 million) for the last August week. Source: en.ethereumworldnews.com
Bitcoin is having a bit of selling pressure after the gains of the last two days. Now the price is moving close to the upward trendline and looks it is holding there. The less favourable scenario is for BTC price to stay moving and touch the projected mid-Bollinger line. The forecast mid-term is positive. MACD is still bullish and Stochastics on overbought area, but the price is away from the +3 Bollinger line and touching the +1 BB-line, so ready to continue moving up.
Ripple is retracing yesterday’s gains, after touching the 0.266 resistance level, but still moving above the ascending trendline. The other positive fact is that the price has pierced the descending trend line. If bitcoin continues its bullishness, My guess is Ripple will follow. Long term, I consider Ripple a risky asset as it is facing a class-action lawsuit from a group of US investors. Also, the company releasing billions of new tokens when the market condition improves is an issue traders should consider. More information here and here.
Ethereum has some 4H selling candles, but that is normal retracing after two good days of advances. The price is a bit below $180, which is acting as a resistance level. MACD is still bullish and also bullish in the daily chart. The price has even crossed the descending trend line to the upside, so our outlook is still for more gains. After crossing the $180 level, the next resistance areas are 183 and $187. The last support seen is $174.5
Litecoin is retracing after hit heavy resistance point at $71, which is the potential neckline of a complex and broad Head and Shoulders pattern. LTC needs to overcome this level convincingly to shift our outlook to bullish. The price still moves above the ascending line, and the MACD is also optimistic. A new BTC push might help it overcome the $71 level.