Analysis-Bitcoin/Ethereum: Tether — the most popular stablon or a factor of instability?
Monday, 8 October opened with a market capitalization of cryptocurrencies at nearly $218.5 billion, but the decline, which began rapidly on Thursday, October 11, contributed to a weekly low capitalization level of $196 billion and Closed the week at $202 billion, and has not reached to the level of Monday. It is natural that the share of Bitcoin on Monday was just above 52%, and at the end of the week — more than 54%.
At the end of last week all coins from the list of top— 20 showed a striking negative trend. The leaders of the fall became Bitcoin Cash (— of 13.32%), NEO (— 12,72%) and NEM (12.7 per cent).
Figure 1 — heat map list of coins the top 20 last week
Any fundamental reasons for the market decline, no. However, noteworthy is that the cryptocurrency market by the nature of its fall picked up momentum from the US stock market (Fig. 2).
Figure 2 — dynamics of stock index NASDAQ100 tech companies and Bitcoin
Wednesday, October 10, the Index of high-tech companies (NASDAQ 100) fell the strongest of all U.S. stocks, 4.4%. If you take into account all the week, the fall of the broad S&P 500 index takes place over six sessions in a row, which is the maximum decline since November of 2016, since the election of the President of the United States.
Contrary to popular belief, amid falling stock market investors do not have to resort to purchases of crypto-currency assets to diversify their investments.
Monday, October 15 was marked by a dramatic surge in market capitalization from $200 billion to $221 billion. Explosive growth triggered closeout Tether (USDT) on the background of rumors about the insufficient coverage of Aldona Vietnam the U.S. dollar. Earlier, in the beginning of the month, there were suspicions that Puerto Rican Noble Bank serving account USDT and exchange Bifinex, close to closing due to a lack of liquidity, and it should be noted that such news arise with surprising frequency. Also one of the catalysts of the fall of the USDT was the news from the exchange KuCoin (soon refuted) about the freezing of the input and output of deposits in the USDT. At some point in the fall USDT USD reached a maximum amplitude of 10%. Accordingly, traders to make instant decisions on the output of USDT in other coins, and this triggered the growth.
Figure 3 — the fall USDT USD
Against the background of sales USDT rate of Bitcoin on Bitfinex team reached at the peak level of $7800. At the time of writing, more realistic and smooth looks of the course in the neighborhood of $6450, which corresponds to the attempt to test the upper limit of the global figure “triangle”. The nearest resistance level is celebrated at around $6800.
Figure 4 — the dynamics of BTCUSD (H4)
As for Ethereum, the area in the neighborhood of $200— 192 is still quite a strong support area. The consolidation above the exponential moving average ЕМА100 on the four-hour chart will facilitate further growth of the asset.
Figure 5 — the dynamics ЕТНUSD (H4)
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Oleg Sergeyev, an analyst at TSI Analytics, especially for Coinspot
The review reflects the subjective position of the analyst — partners Coinspot subject to personal trading style. Trading operations with cryptocurrency are increased risks due to the nature of the market. The editors are not responsible for your trading decisions and recommends trading only to those funds, the loss of which will not be critical.