Home Crypto Crypto Market Analysis Daily Crypto Update 22.06.2018 – Flash Crash

Daily Crypto Update 22.06.2018 – Flash Crash

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General Overview


Market Cap: $$267,957,152,299

24h Vol: $12,899,681,614

BTC Dominance: 40.6%

In the last 24 hours, the crypto market has crashed from 291,883,000,000$ on yesterday’s high to below $270B. This crash was expected as this was my conclusion from the daily update two days ago.

The artificial spike we have seen on Monday didn’t trigger buying, and there’s not a single sign of a potential trend reversal. The prices look unstable and the selling may be very steep as a consequence of the spike up we have seen. As soon as the market participants realise there’s no trend reversal coming, sellers will start selling and there will be no buyers which will result in a significant price drop in a short time period.

The market is currently in red with an average percentage of change ranging from 6-10%.


News


There isn’t any significant negative news that is impacting the market currently. Top stories that came out in the last 24 hours are those regarding major players showing acceptance toward blockchain technology and cryptocurrencies which is positive in sentiment.

Enigma will partner with Intel on privacy research as it prepares to launch its blockchain testnet, the two companies confirmed June 20, as reported by cointelegraph

Enigma said the collaboration would focus on “research and development efforts to advance the development of privacy-preserving computation technologies.”

Robinhood, which in February began allowing zero-fee cryptocurrency trading through its Robinhood Crypto tool, is currently in “constructive” talks with the U.S. Office of the Comptroller of the Currency (OCC) to position itself as a banking services provider, Bloomberg reported.

Bloomberg Terminal, a paid financial data monitoring service, will now list crypto exchange Huobi’s Cryptocurrency Index, according to a press release shared with Cointelegraph today, June 21.

Bloomberg Terminal will also list prices for nine crypto trading pairs, denominated in Tether (USDT), including Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Ripple (XRP), Dash, EOS, and ZCash.

Stanford has created the Center for Blockchain Research, supported in part by the Ethereum Foundation, Stanford Engineering’s website posted yesterday, June 20.

The Federal Reserve Bank of St. Louis will now be tracking the prices of four cryptocurrencies on their research database, according to a June 19 post on the bank’s website.

The database, called the Federal Reserve Economic Data (FRED), will now include the prices of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) from as early as 2014 to the present. The prices will be updated daily with data obtained from U.S.-based cryptocurrency exchange and wallet Coinbase.

As you can see, the crash that we are currently seeing doesn’t have any fundamental reason, it is only price action based much like it always is.


Analysis


BTC/USD

From yesterday’s open at 6768$ until the current low, the price of Bitcoin has decreased by 6.84% coming to 6293$. Since that low which happened an hour ago, the price has recovered a bit which can be seen from the chart below.



The price found some temporary support at the prior low levels of the current range, but that support isn’t close enough to stop the momentum behind the current down move, which is why I am expecting this crash to continue to at least the 6000$ level.


Market sentiment

Bitcoin is in the sell zone, as indicated by hourly chart technicals

Oscillators are on neutral and moving averages signal a strong sell.


Pivot points

S3 6283.1 
S2 6508.8 
S1 6618.3
P 6727.8 
R1 6776.2 
R2 6837.3 
R3 6946.8

ETH/USD

The price of Ethereum has decreased by 10.39% from 543$ on yesterday’s opening, to 490$ where it’s currently.



The price found temporary support on the range support line 2 but has broken 0.236 Fibonacci level and the range support line. As in the case of Bitcoin, these levels can’t and won’t hold the momentum behind the move.


Market sentiment 

Hourly chart technicals signal a sell.

Oscillators are on neutral while moving averages signal a strong sell.


Pivot points

S3 483.21 
S2 507.08 
S1 516.59 
P 530.95 
R1 540.46 
R2 554.82 
R3 578.69

XMR/USD

The price of Monero has decreased by 6.57%, coming from 123.550$ to 115.225$.



The price has broken out off of the triangle and found some temporary support on the prior low levels. The price is going to struggle to stay above these levels, but eventually, it will drop down further, and the next level strong enough to hold the drop is at around 100$.


Market sentiment 

Monero’s hourly chart technicals signal a strong sell.

Oscillators are signalling a sell and moving averages a strong one.


Pivot points

S3 115.613 
S2 119.283 
S1 121.387 
P 122.953 
R1 125.057 
R2 126.623 
R3 130.293

Conclusion


This crash was expected and in fact, it’s way overdue. I have stated in my weekly update that I am expecting a retest of prior lows that were the lows in this prolonged correction before we can see a short-term trend reversal. That would in the case of Bitcoin be around 6000$ and I think that this crash is finally going to do exactly that – retest the ultimate lows, which is why I am expecting more red to come today and especially over the weekend. Maybe on Sunday, we will see the selloff end, and from Monday that trend reversal to retest the recent highs, before capitulation phase can happen.

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