Daily crypto update 08.08.2018 – Flash crash

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General overview

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• Market Cap: $232,384,144,425
• 24h Vol: $15,580,869,369
• BTC Dominance: 48.5%

In the last 24 hours, cryptocurrency market cap evaluation fell from 257,284,000,000$ to 229,140,000,000$ at its lowest today which is a 28,144 billion dollar decrease which happened in about 12 hours in total. 

The market is currently in red, with an average percentage of change among top 100 coins ranging from 6-12%. Only Pundi X and Aurora are up by 2,9% and 2,3%.

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News

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Major headline that is the causing this flash crash as many news media outlets are reporting is that VanEck-SolidX Bitcoin ETF application was delayed for consideration for September by the U.S. Securities and Exchange Commission (SEC). 

The Securities and Exchange Commission late Tuesday delayed a decision on an application for the first bitcoin-related exchange-traded-fund. The regulator said it planned on making a decision on the proposed ETF from VanEck and SolidX on Sept. 30. A decision was expected no earlier than Aug. 10, 45 days from the time the ETF duo submitted their application for the fund.

Source: market watch

“Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change,” the SEC said.

Source: investing

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Analysis

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BTC/USD

From yesterday’s high at 7159$ the price of Bitcoin has fallen by 10,93% and is currently trading below 6500$.

The price fell steeply and quickly and is currently below the 0 Fibonacci retracement level which is the significant support level that was broken last time Bitcoins price was heading downwards and created a lower low. This indicates a very bearish sentiment and another lower low scenario.

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Market sentiment 

Hourly chart technical indicators are signaling a sell.

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Pivot points

S3 5902.6
S2 6375.6 
S1 6547.2 
P 6848.6 
R1 7020.2 
R2 7321.6 
R3 7794.6

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ETH/USD

From yesterday’s high at 410$ the price of Ethereum has decreased by 10,44% and is currently trading at 367$.

Looking at the hourly chart, we can see that the bearish pennant was broken on the downside which propelled the price of Ethreum for a steep fall. The price is now looking for support and is currently sitting just slightly above the 0 Fibonacci retracement level which is the prior low level on the daily chart.

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Market sentiment

Ethereum is in the sell zone.

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Pivot points 

S3 300.06 
S2 342.79 
S1 360.30 
P 385.52 
R1 403.03 
R2 428.25 
R3 470.98

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XRP/USD

From yesterday’s high at 0,4133$ the price of Ripple has fallen by 16,91% as its currently trading at 0,347$.

Looking at the hourly chart we can see that the triangle was broken from the downside and as the triangle’s support was also a significant horizontal support level the breakout resulted in a straightforward downfall. The price is currently looking for support and it found some support on the current levels but they are far from strong in order to hold the momentum behind the sell-off.

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Market sentiment 

Hourly chart technical indicators are signaling a sell.

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Pivot points

S3 0.26042 
S2 0.36093 
S1 0.39822 
P 0.46144 
R1 0.49873 
R2 0.56195 
R3 0.66246

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Conclusion

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It looks like the last straw that investors held on to in order not to fall into the abyss of the cryptomarket death was the Bitcoin ETF. The news has so hyped out that now after the SEC announced they are postponing the decision for late September that straw broke and the straight downfall started. I think that this is going to be the final sell-off but I don’t mean that it will be over soon. What I would expect from here on for the cryptomarket is another despair and pain period with no upside on the horizon.