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Introduction
The news from China over the last couple of days has been the main driver of cryptocurrency movement.
What happened:
- Uncertainty and fear. There were lots of rumours and as soon as BTCC informed about a trade shutdown, the market moved down. OKCoin and Huobi shutdown rumours also stirred the pot.
- Development of the situation: everything happened fast, rumours about shutdown have not been confirmed, OKCoin and Huobi continue to work, but close trading and deposits (CNY).
- Huge volatility. Big sells on rumours, big buys on refutation - all cryptocurrencies have been prone to speculative movements in the lastest days. Someone seems to have made a good profit on this.
To sum up, China follows the path of regulation. Even though there are as yet no radical announcements from the Chinese government, many insiders behaved as alarmists - and the market reacted accordingly.
BTC/USD 16.09.2017
Since volatility has been huge, it makes sense to look at day charts.
- The uptrend line was hit, along with settling. It’s a rather bearish signal, but don’t over rely on technical analysis. News plays the main role on the current market.
- For the first time in a long while, Bitcoin returned to one of the main levels of the summer - $3000. The support zone has managed to stay, since good news arrived.
- Huge volatility, even on a day chart.
- Thanks to good news, dynamics have changed. If it remains positive, we might see $4000 tests. Settling above $4000 may mean possible formation of a new local uptrend.
- For now, news for BTC doesn’t seem to be promising. The first major events are anticipated closer to November.
ETH/USD 16.09.2017
Many cryptocurrencies have been subject to volatility lately, and Ethereum is no exception.
Technical situation:
- Uptrend line has been hit.
- $200 support zone remains.
- Judging by dynamics, we will see $280 resistance tests in the nearest days. Technically, this level will be very important for speculators.
- In September, ETH will have big news coming. It will be a good growth driver.
Fundamentally, the project is going well. ERC-20 is becoming an industry standard. The number of Ethereum ICOs is huge. This is a good sign for the long term investor.
LTC/USD 16.09.2017
LTC behaves much stronger than other cryptocurrencies.
Current situation:
- News has broken a very strong uptrend line, that started back in April. No fixation happened, the price quickly went back. It’s a very bullish signal.
- $60 resistance zone. It's the first point LTC should test in the nearest days.
- It’s an atypical situation, but right now the uptrend dynamic level will be good support for LTC.
News for LTC can be generous, thanks to Charlie Li. LN tests and the local successes of “digital silver” may be good motivation for growth.