Home Crypto Crypto Market Analysis Daily Crypto Update 19.06.2018 – Will Yesterday’s Spike Trigger a Trend Reversal

Daily Crypto Update 19.06.2018 – Will Yesterday’s Spike Trigger a Trend Reversal

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General Overview


Market Cap: $287,823,534,235

24h Vol: $12,135,483,741

BTC Dominance: 40.0%

In the last 24 hours, something strange has happened. After a period of stagnation, all of a sudden the evaluation of the crypto market cap has spiked up from 276,698,000,000$ to 289,453,000,000$. The spike wasn’t caused by news or any fundamental factors, which is why this is strange.

I have written my take yesterday on what I think has happened in the post entitled ‘The Reason Of The Sudden Rise In The Crypto Market May Be Manipulation‘ which you can read here.

The market is currently in green as a result of the rise with an average percentage change ranging from 3-5%.


News


There aren’t any significant news items that came out in the last 24 hours that can justify the up move we have seen in the market. Top headlines that came out are informative in nature and every major news outlet reported on the sudden rise in the crypto market capitalisation rise.

Crypto Markets See $13 Bln Price Spike in One Hour, Despite Negative BIS Report – cointelegraph

Investors Turn Bullish as Cryptocurrency Market adds $12 Billion 24 Hours – ccn

Bitcoin Recovery Stalls Raising Risk of Price Drop – coindesk

Majority of analysts expected a steep fall to 6000$ for Bitcoin, which is why this unexpected rise is considered a news event and was reported by many.

Other relevant news in the crypto space are the following:

US: Federal Employees to Disclose Crypto Holdings Following New Guidance

The US Office of Government Ethics (OGE) has ordered federal employees to report their holdings of virtual currency, according to new guidance issued June 18. The guidance will affect around 2 million federal executive branch employees, including the Departments of Homeland Security, the Army, Justice, Veterans Affairs, and others.

Source: cointelegraph

EOS Vulnerability Will Lead to ‘Massive Exchange Hack’, Predicts Cornell Blockchain Researcher

Cornell professor Emin Gün Sirer forecasted his belief that EOS, will be the root cause of a significant cryptocurrency exchange hack at some point during the next calendar year.

“I’m calling it: there will be a massive exchange hack within the next year, taking advantage of an EOS vulnerability. That exchange will lose its hot wallet.”

“If EOS uses its arbitrators to reverse the hack, the contagion will spread downstream,” he added. There will be threats of lawsuits involving the devs and the [block producers].”

While clarifying that this prediction is not based on any specific vulnerability he has identified or believes lies hidden within the EOS source code, he argued that such an exploit is likely inevitable given the way developers “handle safety critical bugs.”

Source: ccn


Analysis


BTC/USD

From yesterday’s opening at 6378$ until now, the price of Bitcoin has increased by 5.28% and is currently sitting around 6714$.



Looking at the hourly chart we can see that the price interacted with the unconfirmed baseline support 2 (black dotted line) and was stopped at resistance found on those levels at 6850$. Currently, the price is sitting quietly in the middle of the range, as market participants are waiting to see if the spike up will push the prices higher.


Market sentiment 

Hourly chart signals a buy.

Oscillators are on buy and moving averages signal a strong one.


Pivot points 

S3 5685.4 
S2 6164.3 
S1 6436.7 
P 6643.2 
R1 6915.7 
R2 7122.2 
R3 7601.1

XRP/USD

From yesterday’s opening, the price of Ripple has increased by 4.91% going from 0.52$ to 0.547$ where it is currently.



The price has found support at the 0.51$ level and bounced off it, and is starting to interact with the minor resistance line, as you can see from the hourly chart. We will see what happens in the following hours, but if this resistance line gets broken I would expect the price to go up to the purple dotted line which is a significant level that served as support in the past.


Market sentiment 

Hourly chart technicals signal a buy.

Oscillators are on buy, and moving averages signal a strong buy.


Pivot points

S3 0.43653 
S2 0.48395 
S1 0.51157 
P 0.53137 
R1 0.55899 
R2 0.57879 
R3 0.62621

LTC/USD

In the last 24 hours, the price of Litecoin has increased by 4.29% rising from 93.6$ to 98$ where it is currently.




On the hourly chart, we can see that the price broke out of the bearish pennant on the upside and has stopped at a minor resistance line like other coins.


Market sentiment 

Litecoin is in the buy zone.

Oscillators are on sell, and moving averages signal a strong buy.


Pivot points

S3 82.890
S2 90.100
S1 94.469
P 97.310
R1 101.679
R2 104.520
R3 111.730


Conclusion


After the sudden rise, the prices of all major cryptos including these that are covered in this report have spiked up but were stopped out at minor resistance levels which means that the momentum behind the move wasn’t strong. Today, we will see if the spike serves as a signal for market participants to start buying, and that will be confirmed if the minor resistances are going to be broken and we see a high exceeding the prior one. That will in the case of Bitcoin be around 7000$, in the case of Ripple around 0.578$ and in the case of Litecoin around 111$.

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