The Nasdaq, S&P500 and Dow all corrected sharply on Sep. 3 and opened today with additional downside, suggesting that traders are rushing to the exit. Bitcoin (BTC) and several other major altcoins have also witnessed a strong bout of profit booking that has pulled down the total crypto market capitalization from $394 billion on Sep. 2 to about $339 billion today.
Even gold, which is a traditional safe haven asset, has not been spared and lost ground in the past two days. This shows that traders are booking profits in every asset class that has run-up in the past few weeks.
Daily cryptocurrency market performance. Source: Coin360
Retail traders may view the current fall as a buying opportunity because over the last few months the fundamentals of Bitcoin and cryptocurrencies have improved remarkably. Even market data suggests that several large investors could be waiting to accumulate at lower levels.
However, in a falling market, the prudent strategy should be to wait for the price to stabilize and confirm a bottom before attempting to buy. Before buying, it’s crucial to determine where the critical support levels are that might attract bottom fishing from the aggressive bulls.
Let’s find out!
Bitcoin plunged below the $11,000 and $10,400 support on Sep. 3 and hit an intraday low of $9,958. This fall completed a bearish head and shoulders pattern, which has a minimum target objective of $9,540.
BTC/USD daily chart. Source: TradingView
Currently, the bulls are attempting to defend the $10,000 support but the weak bounce suggests that buyers do not think a bottom has been found yet.
The 20-day exponential moving average ($11,331) has turned down and the relative strength index has dipped into the negative territory, which suggests that the bears have an upper hand.
If the bears sustain the price below $10,000, the next support is at the breakout level of the large symmetrical triangle, which is close to $9,500 but if this support also cracks, the decline could extend to $9,000 and then to $8,000.
This bearish view will be invalidated if the BTC/USD pair rebounds off the current levels and rises above $11,000.
Although the bulls defended the $415.634 support on Sep. 2, they could not build upon it and push the price higher. The aggressive selling on Sep. 3 broke below the 20-day EMA ($405) and pulled Ether (ETH) down to the next support at $366.
ETH/USD daily chart. Source: TradingView
The bulls are currently attempting to defend the 50-day simple moving average ($368), which is just above the critical support at $366.
Any relief rally from the current level will face stiff resistance at the 20-day EMA. If the ETH/USD pair turns down from this resistance and breaks below $366, a deeper correction to $288 is possible.
However, if the bulls can push the price above the 20-day EMA, the pair could remain range-bound for a few days.
XRP broke below the 50-day SMA ($0.265) on Sep. 3 and plummeted to the $0.235688 support. The price has dipped below both moving averages and the 20-day EMA ($0.275) is sloping down, which suggests that the bears are in command.
XRP/USD daily chart. Source: TradingView
Currently, the bulls are attempting to defend the $0.235688 support but any relief rally is likely to face stiff resistance at the 20-day EMA. If the XRP/USD pair turns down from this level and breaks below $0.235688, a deeper correction to $0.19 is possible.
This bearish view will be invalidated if the pair rebounds off the current levels and rises above both moving averages. Such a move will suggest that the bulls accumulated at lower levels instead of panicking.
Chainlink (LINK) plummeted below the $12.89 support on Sep. 3 and formed a lower low, which broke the uptrend. Currently, the altcoin is trading inside a descending channel and the bulls are attempting to defend the $11 level.
LINK/USD daily chart. Source: TradingView
The 20-day EMA ($14.49) has started to turn down and the RSI has dipped into the negative territory, which suggests that the advantage has tilted in favor of the bears. The relief rally is likely to face resistance at $12.89 and again at the 20-day EMA.
If the LINK/USD pair turns down from either resistance, the bears will try to resume the correction by breaking below the descending channel. If they succeed, a drop to $8.908 is possible.
The first sign of strength would be a break above the 20-day EMA and a rally above the descending channel will suggest that the bulls are back in the game.
Bitcoin Cash (BCH) nosedived on Sep. 3 and hit an intraday low of $201.51, which is a huge negative. The 20-day EMA ($270) is turning down and the RSI has slipped into the negative zone, which suggests that the bears are in command.
BCH/USD daily chart. Source: TradingView
Currently, the bulls are attempting to defend the critical $200 support but they are likely to face stiff resistance at $245 and again at the 20-day EMA.
If the price turns down from either level, the bears will again try to sink the BCH/USD pair below $200. If they succeed, a deeper correction to $150 is possible.
However, if the bulls defend the $200 support, the pair could remain range-bound for a few days.
Polkadot (DOT) has catapulted into the top ten cryptocurrencies by market capitalization, due to its stellar rally of the past few days. The altcoin rallied from $2 on Aug. 18 to a high of $6.8619 on Sep. 1 where traders started booking profits.
DOT/USD daily chart. Source: TradingView
The current correction had pulled down the DOT/USD pair to $4.50, which is just above the 50% Fibonacci retracement level of $4.431. If the pair sustains the current rebound, then a rally to $5.7 and above it to $6.8619 is possible.
Conversely, if the relief rally fails to find buyers at higher levels, then the next support on the downside is the 61.8% Fibonacci retracement level of $3.8572.
Litecoin (LTC) broke below the 50-day SMA ($55) and the $51 support on Sep. 3 and fell to an intraday low of $45.40, which is a huge negative.
LTC/USD daily chart. Source: TradingView
The moving averages are on the verge of a bearish crossover and the RSI has dipped into the negative zone, which suggests that the bears have the upper hand.
Any recovery is likely to face stiff resistance at $51 and above it at the 20-day EMA. If the price turns down from either level, a drop to $39 is likely.
This bearish view will be invalidated if the bulls can push the LTC/USD pair above $51 and sustain the level for three days.
Traders rushed to book profits in Crypto.com Coin (CRO) on Sep. 3, which resulted in a break below both the moving averages for the first time since April, which suggests that the upward momentum has broken.
CRO/USD daily chart. Source: TradingView
The next support on the downside is $0.14 and if that cracks, the correction can extend to $0.127459, which is the 38.2% Fibonacci retracement level of the entire up-move that started way back in mid-March.
If the CRO/USD pair rises from either level, it will suggest that the sentiment remains positive as the bulls are buying on dips to strong support levels.
However, if the bears sink the price below $0.127459, the next support is the 50% Fibonacci retracement level of $0.107801.
Binance Coin (BNB) had closed (UTC time) above the overhead resistance of $24.4588 on Sep. 2, which showed that the sentiment was bullish.
BNB/USD daily chart. Source: TradingView
However, it did not take long for the sentiment to change and the BNB/USD pair turned around and plunged below the critical support of $20.5710 on Sep. 3.
This is a good example of how sentiment can turn around in a jiffy, hence, traders should always be very alert.
When the price dips below both moving averages, it signals weakness. The bears will now try to sink the pair to $18.23 and if that support also cracks, the decline could extend to $16.40.
This bearish view will be invalidated if the bulls can push the price above $20.571 levels and sustain it for three days. Such a move will indicate that the current fall was a bear trap.
The failure of the bulls to sustain Bitcoin SV (BSV) above $200 on Sep. 2 attracted selling, which intensified on Sep. 3 and pulled the altcoin to the critical support at $146.20.
BSV/USD daily chart. Source: TradingView
The weak attempt to rebound from the current levels suggests a lack of confidence among the bulls that this support will hold. If the bears sink the BSV/USD pair below the $146.20–$135 support zone, a drop to $77 is possible.
Conversely, if the bulls defend the $146.2 levels aggressively, the pair could attempt to rise to $200 and remain range-bound between these two levels for a few days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Crypto Exchange Binance Under Investigation by Department of Justice and IRS
Crypto exchange giant Binance is allegedly under investigation by the U.S. Internal Revenue Service (IRS), as well as the Department of Justice (DOJ) for money laundering and tax evasion.
BREAKING: Binance, the world’s biggest crypto exchange, is under investigation by the Justice Department and IRS https://t.co/mk0Njo7tUE
— Bloomberg Crypto (@crypto) May 13, 2021
According to Bloomberg, the federal probe is confidential, with both the DOJ and IRS having “sought information from individuals with insight into Binance’s business.” The report accused Binance of succeeding without strong government oversight, with its lack of corporate headquarters and incorporation in the Cayman Islands — which levies no taxes and offers more lenient business practices.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity,” said a Binance spokesperson in response to the recent probe.
Binance and Crypto Markets Continue to Face Regulatory Scrutiny
One of the biggest criticisms of Bitcoin and the crypto space at large has been their use for criminal activity. Back in January, Treasury Secretary Janet Yellen raised concerns over cryptocurrencies being used in terrorist and illegal financing, with other major financial figures like Charlie Munger associating the industry with “kidnappers” and “extortionists.”
Chainalysis, a blockchain-based data analytics firm used by U.S. federal agencies, reported in 2019 that Binance saw more funds tied to criminal activity than any other exchanges based on the transactions that it had analyzed.
“Binance and Huobi lead all exchanges in illicit Bitcoin received by a significant margin. That may come as a surprise given that Binance and Huobi are two of the largest exchanges operating, and are subject to KYC regulations. How can they be receiving so much Bitcoin from criminal sources? Let’s start by looking at the specific accounts receiving illicit funds at both exchanges.”
This is certainly not the first time Binance has been embroiled in legal troubles. Recently, the exchange’s venture into tradable stock tokens landed the company under the scrutiny of European regulators, including the U.K’s Financial Conduct Authority (FCA) and Germany’s BaFin. In March, Binance hired former U.S. senator Max Baucus as a regulatory advisor.
Featured image from UnSplash
Coinsmart. Beste Bitcoin-Börse in Europa
Kraken Daily Market Report for May 14 2021
- Total spot trading volume at $3.17 billion, 5.3% higher than the 30-day average of $3.01 billion.
- Total futures notional at $638.8 million.
- The top five traded coins were, respectively, Ethereum (+2.3%), Bitcoin (-1.4%), Tether (0%), Dogecoin (12%), and Polkadot (-0.6%).
- Strong returns from Dogecoin (+12%) and Synthetix (8.5%).
|May 14, 2021
$3.17B traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD
#####################. Trading Volume by Asset. ##########################################
Trading Volume by Asset
The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.
Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (May 14 2021)
Figure 2: Mid-size trading assets: (measured in USD) (May 14 2021)
Figure 3: Smallest trading assets: (measured in USD) (May 14 2021)
#####################. Spread %. ##########################################
Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.
Figure 4: Average spread % by pair (May 14 2021)
#########. Returns and Volume ############################################
Returns and Volume
Figure 5: Returns of the four highest volume pairs (May 14 2021)
Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (May 14 2021)
###########. Daily Returns. #################################################
Daily Returns %
Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (May 14 2021)
###########. Disclaimer #################################################
The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.
Ternoa Blockchain’s NFT-based data transmission project gets LVT Capital as a partner
Ternoa Blockchain has found a new partner as it introduces its NFT-based data transmission service to the market.
The company received an investment from Australia-based private equity firm LVT Capital to form a strategic partnership aimed at enhancing the sustainability, innovation, competitiveness, and dependability of Ternoa’s services that allow users to build time capsules for safely transmitting their memories and important data to their descendants even after death.
Building on LVT’s Expertise
With its focus on blockchain, crypto, and tech projects, LVT Capital has already proven its expertise in these areas with its numerous collaborations and investments. The company has already made investments in more than 40 top-caliber crypto, real estate, finance, education, and cybersecurity firms with 200 more under evaluation for potential collaborations.
LVT Capital has the market and technology expertise as well as the resources to enhance Ternoa’s unique service and promote it to boost the company’s competitiveness. For instance, LVT Capital has its own media & marketing services and an online publishing arm focused on blockchain, technology, and business, which makes the firm a perfect fit for Ternoa.
Ternoa Blockchain Offers Customizable Time Capsules
Ternoa Blockchain found a new way to use NFT and blockchain technologies to help people handle their data storage and transmission needs, which is one of the reasons for LVT Capital’s decision to invest in its business. With its Polkadot-powered, NFT-based customizable time capsules, people can securely transmit their memories such as photos, videos, and other important data to future generations or simply use the platform as a secure storage solution.
Ternoa’s platform is flexible enough and gives users several options on how they wish their data to be retrieved by their intended recipients. The available transmission protocols are Safe Protocol, Consent Protocol, Death Protocol, D-day Protocol, and Countdown Protocol.
- Safe Protocol – Data owners can retrieve data at any time, which makes use of Ternoa as a secure and portable storage solution.
- Consent Protocol – Recipients can access the time capsule as long as the original owner does not use his veto option.
- Death Protocol – The time capsule will be delivered to the beneficiaries upon the death of the creator based on local death registries APIs.
- Countdown Protocol – Introduces a countdown feature which can be set to1 month, 1 year, or 10 years. The time capsule will be delivered to the recipient if the countdown reaches the limit. The creator can reset the countdown at any time.
- D-day Protocol – Time capsule can only be accessed on a specific date, which is set by the creator.
While the loss of data is always an issue for other data storage solutions, Ternoa eliminated this risk by making copies of the files inside the time capsule, which are stored in other dex storage blockchains. At the moment, Ternoa sends these copies to Aerweave, Sia, and Storj while keeping the original version in its network. To learn more about the project, click here.
IMPORTANT NOTE: This is a paid press release, which BitcoinerX has posted as part of a commercial agreement. BitcoinerX is not responsible for producing this content and does not endorse the products or services mentioned. It is the responsibility of the company posting the press release to ensure the material is credible and accurate. BitcoinerX is not responsible for any damage or loss caused to anyone who chooses to use the company, product or services mentioned in the press release. BitcoinerX does not recommend using the information in the press release to form the sole basis of investment decisions.
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