Bitcoin, Ethereum, and XRP on Last Legs Before Further Losses
More than $10 billion has been wiped out of the total cryptocurrency market capitalization after OKEx announced it would be suspending all withdrawals. The significant capital outflow saw Bitcoin, Ethereum, and XRP drop in tandem by more than 3%.
Now, different technical indexes suggest that all the markets could quickly turn from bad to worse as sell pressure mounts.
Bitcoin’s price action has been contained within an ascending parallel channel ever since the September market crash.
Each time BTC has risen to the upper boundary of this technical formation, it drops to hit the lower edge, and from this point, it bounces back up again. This behavior is consistent with the characteristics of a channel.
Following the recent news about OKEx, the flagship cryptocurrency retraced nearly 3% and is now trading around the middle line of the parallel channel. A spike in sell orders around the current price levels could push BTC further down to the lower boundary of this technical pattern as has happened over the past month.
When looking at IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model, this thesis holds.
Based on this on-chain metric, Bitcoin faces a stiff resistance barrier ahead while it sits on top of weak support. An increase in selling pressure may indeed push prices to the next significant area of support, around $10,800.
Here, approximately 1.3 million addresses had previously purchased nearly 900,000 BTC. Such a critical supply barrier may have the ability to keep falling prices at bay.
Regardless, on-chain analyst Willy Woo maintains that the selling pressure behind the pioneer cryptocurrency is decreasing over time, which is a “sure sign of bull season.”
The pessimistic outlook will only be invalidated if Bitcoin manages to slice through the overhead resistance between $11,400 and $11,700. Turning this price hurdle into support will signal the breakout of the ascending parallel channel previously mentioned. Under such circumstances, BTC might march towards $13,000.
Ethereum has been on a downtrend over the past four days that has seen its price drop by nearly 9%.
The sell-off came after the rejection from the x-axis of an ascending triangle that appears to be developing on its 4-hour chart since Sept. 5. Since then, Ether’s price action led to a horizontal line formation along with the swing highs and a rising trendline along with the swing lows.
If sell orders continue to pile up, the smart contracts giant would likely look for support around the ascending triangle’s hypotenuse. This critical barrier currently sits at $350.
Despite the high probability of a steeper decline, IntoTheBlock’s IOMAP reveals that Ethereum bears will have difficulty pushing prices down. Roughly 650,000 addresses had previously purchased 11.5 million ETH between $360 and $370.
Holders within this price range may buy more tokens to avoid seeing their positions go into the red. But if the sell-off intensifies, a drop to $350 is almost guaranteed, while slicing through this support level could trigger a 20% retracement.
On the flip side, investors must pay close attention to the x-axis of the ascending triangle previously mentioned. If the bulls manage to turn the $390 resistance into support, the odds for a 20% jump will increase drastically.
Such an upswing might see Ether rise to $470.
Like the rest of the market, XRP was also affected by the recent news about OKEx. The cross-border remittances token took a nearly 4% nosedive in the past few hours. The downswing was significant enough to push prices below the 100-day moving average, which was acting as strong support.
Now that this critical barrier has been turned into resistance, XRP could drop further. Based on the descending parallel channel that formed in early August, this cryptocurrency could see its price plummet towards the channel’s middle or lower boundary.
These support levels sit at $0.22 and $0.19, respectively.
The only thing that could save XRP from such a pessimistic outlook is a break above the $0.26 resistance level. Slicing through this price hurdle will signal a breakout of the descending parallel channel previously mentioned.
By drawing a parallel line equal to the channel’s width, the upswing might see prices rise to $0.30.
Over the past few hours, the sell-off pushed Bitcoin, Ethereum, and XRP to critical support barriers. It seems that this new wave of FUD has discouraged investors from all the latest positive developments. Although OKEx’s users may not be able to withdraw their cryptocurrencies at the moment, data suggests that all funds are “SAFU.”
Though there is little reason to panic, short-sighted market participants will likely add a dose of volatility.
Thus investors must pay close attention to the different price levels previously mentioned. A potential downswing could be the last opportunity for sidelined investors to get back into the market before a new bull cycle begins.
Author: By Ali Martinez
33 money laundering crypto crims targeted worldwide in 3 separate cases
Law enforcement officials from around the world hav taken action against a major transnational money laundering operation involving cryptocurrency.
On Oct. 15, Europol announced a successful operation across 16 countries that resulted in the arrest of 20 individuals suspected of working for the QQAAZZ criminal network.
The organization is accused of laundering tens of millions of euros for top cybercriminals since 2016. The funds are allegedly transferred through international bank accounts, shell companies based in Poland and Bulgaria, and via cryptocurrency mixing services.
Around 40 homes were searched across the United Kingdom, Spain, Italy, Latvia, and Bulgaria as part of “Operation 2BaGoldMule,” with arrests made in Australia, the U.S, the U.K, Portugal, Spain, Latvia, and Poland.
Bitcoin mining equipment was also seized in Bulgaria.
On the same day, a 40-year-old man was arrested in New Zealand for using cryptocurrency to launder more than $2 million for criminals. The man also laundered funds by purchasing luxury vehicles, including a Lamborghini and Mercedes G63.
The Auckland resident is now facing 30 charges, including allegations of obtaining $1 million in credit from a bank using deception. Six other New Zealanders were arrested in a series of raids and asset seizures across the country the previous day.
Oct. 15 also saw the U.S. Department of Justice unseal a superseding indictment charging six individuals for their participation in a conspiracy to “launder millions of dollars of drug proceeds on behalf of foreign cartels.”
The indictment alleges the individuals used casinos, front companies, cash smuggling, and bank accounts to launder money on behalf of drug syndicates. One suspect is also accused of planning to bribe a United States Department of State official using cryptocurrency, hoping the official would create fraudulent U.S. passports for him and his associates.
Gold’s Safe Haven Gains Under Pressure as Dollar Strengthens – Forex News by FX Leaders
Gold prices are trading somewhat bearish on Friday, pressured by a stronger dollar amid expectations of a delay in the next round of fiscal stimulus in the US. At the time of writing, GOLD is trading at a little above $1,906.
So far this month, gold has failed to make strong moves, trading in a range due to the heightened uncertainty about the announcement of the coronavirus relief package before the presidential elections on November 3. While the safe haven metal remains supported by a resurgence in cases across Europe and some parts of the US, the recent gains in the dollar are keeping its bullishness in check.
The release of the latest weekly jobless claims report during the previous session revealed a sudden spike in the number of people claiming unemployment benefits in the US, raising fears about the impact of the pandemic on the country’s labor market. Gold prices also enjoy support from a spike in cases in Europe and Britain, which has driven both regions to announce fresh restrictions and curfews to contain the spread of the virus once again.
Markets are worried about the economic impact of the fresh restrictions on the European and British economy, even as both regions are yet to recover from the damage caused by the first round of lockdowns. Concerns about the economic fallout from the pandemic is expected to keep gold supported in the near future, although gains in the dollar as a safe haven currency could keep prices from rising too high.