Leading Crypto Altcoin may Drop 40 Percent if Support Fails
While Bitcoin has enjoyed a productive year so far, the Altcoin market has been quite slow. Only two out of the thousands of altcoins on the cryptocurrency market were able to outperform Bitcoin throughout the first half of 2019.
But there could be more trouble in the near future for the altcoin market, particularly Binance, as crypto analyst predicts a 40% decline if the next support levels fails.
During the first half of this year, Binance made several announcements, launched a DEX and margin trading among others. Between the consistent positive media attention and the Binance Launchpad platform for IEOs using the native crypt token of the exchange, pushing demand upwards, the altcoin known as Binance Coin’s value increased drastically as a result.
But in June, things started to go south for the so-called crypto market poster boy. Binance revealed it will soon be shutting its doors to US-based investors – a category of crypto investors that make up the majority share of the market.
The move is to comply with international financial market regulators, who don’t want the U.S citizens to trade certain crypto assets that may be deemed securities or fall under certain regulatory guidelines.
Instead, Binance will close deposits and trading for these customers, and drive them into a new US-based Binance exchange with just 29 Bitcoin and alcoins under consideration for inclusion.
The uncertain circumstances regarding the future value of Binance Coin, how it is implemented in the United States market, if at all, and several other unanswered questions persist, and it’s causing the value of Binance Coin to fall.
One crypto analysts believes the current value of Binance Coin could drop a further 40% if support doesn’t hold in BNB price charts.
The analyst wrote on Twitter, “If you are holding @cz_binance’s coin, you sure as hell want to see a bounce from diagonal support + 19.5k area. Failure to do so, next support is nearly 40% lower
Exchange will close access to USA accounts in 2 days – curious to see this play out.”
Binance Coin has been one of the strongest performers in 2019, surpassing both Bitcoin and Litecoin as the best performing crypto asset in the market. Outside these three assets, however, the rest of the altcoin market has been performing poorly.
Much of altcoins bleed out is blamed on the lack of investor willingness to take the regulatory risk related with some of the more exotic altcoins found on Binance and other platforms. There is fear that these altcoins cannot be traded in some jurisdictions, basically making them worthless to some investors.
Instead of getting caught holding permanently heavy loads, investors have been avoiding altcoins in favor of the more regulatory friendly Litecoin and Bitcoin.
Source Link: https://www.newsbtc.com/2019/09/10/leading-crypto-altcoin-may-drop-40-if-support-fails/
Altcoins May Consolidate for Six Months or More Before “Altseason” Kicks Off
Bitcoin has been stuck in a period of consolidation for the past several days and weeks, which has proven to be a positive thing for altcoins, as many have been able to post decent gains over the past few days.
It is important to note that analysts do anticipate altcoins to potentially consolidate for many more months before the prophesized “altseason” kicks off, but there is a possibility that they will see a decent sized uptrend in the short-term.
Altcoins Pop as Bitcoin Consolidates Around $8,300
At the time of writing, Bitcoin is trading up marginally at its current price of $8,320, which marks a slight retrace from its daily highs of $8,400 that were set over night, and it appears that this price is a short-term resistance level for BTC.
Multiple altcoins have been able to surge amidst this bout of sideways trading for BTC, with XRP surging nearly 4% yesterday and quickly climbing back into the $0.30 region, which is significantly higher than its recent lows of $0.24.
Luke Martin, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes that XRP is the strongest major altcoin as far as TA is concerned, which could mean further gains are imminent in the near-term.
“$XRP is the strongest major for the 3rd/4th week in a row,” he explained.
Today, Binance Coin (BNB) has led the markets as it has been able to surge nearly 5% to its current price of $18.97, which marks a decent climb from its recent lows of under $16 that were set earlier this week.
Will Major Cryptos Trade Sideways in Near-Term?
Naturally, any major Bitcoin movement will likely provide some guidance to the aggregated crypto market, it is important to note that one analyst believes that altcoins may trade sideways for the coming six months regardless of how Bitcoin trends.
Mitoshi Kaku, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying that most major alts will either incur a “nice” uptrend in the near-future, or will be stuck in an “accumulation” range for the coming six months or so.“A few examples of coins having similar cycles and “W&P Pivots”. $XRP $LTC $ADA $ETH $ZEC $NEO. Ichimoku on the 1W for all suggest the possibility of a nice trend, or a 6 month accumulation. #CryptoIkagi March-April 2020,” he said while pointing to the below charts.
The coming few weeks should provide insight into where most major altcoins will head in the near-future, and any further extension of their recent incurred upwards momentum may mean that an uptrend is imminent.
Altcoins may face imminent mass consolidation
- Industry experts at the Delta Summit see a squeeze in the Altcoin market.
- Bitcoin is dominating around two-third of digital coins supply.
- Mass consolidation could also see the evaporation of many projects.
“Extinction Rebellion” is one of the movements fighting climate change – but Altcoins’ attempt to rebel may be futile. FXStreet’s Tomàs Salles is attending the Delta Summit in Malta and reports about a growing notion that the number of cryptocurrencies will significantly fall.
Andy Cheung, Head of Operations at OKEx, says that projects that have failed to reach a critical mass may reach the end of the road sooner rather than later. His views are shared with several other prominent industry leaders.
No fewer than 2,940 crypto projects are currently listed on CoinMarketCap. Bitcoin is worth around $146 billion, Ethereum around $18 billion, and Ripple just over $10 billion. Tron, which has enjoyed a surge of late, is worth less than $1 billion and is located in third place. Overall, the total market cap of all the coins and tokens listed on the website stands at around $217. Bitcoin, the granddaddy of cryptos, is worth around 67% of the market.
It is essential to stress that some projects may have a brighter future than others. Ethereum, which powers several ventures, may consolidate its power and emerge stronger. Ripple, whose technology is used for transactions, may morph into a successful blockchain company – but perhaps lose its prominence as a cryptocurrency.
Other projects down the line may rise or fall on adoption – which may become the key to success. It may replace wild speculation as the prominent driver of prices.
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Altcoin News Today – September 27, 2019
- Major Altcoins Hit 6-MONTH Lows
- Ripple, EOS, Litecoin and Others Lead the Decline
With the recent price movement of altcoins, there have been several price crash of altcoins doing the week, with some little consolidations here and there, still, the price has hit a dead end. Altcoins are still trying to recover from Tuesday’s sudden price crash, the price movement left double-digit losses for altcoins. Unfortunately, Bitcoin took the strongest hit with a massive loss of up to 34% with other altcoins hitting several month lows.
As of yesterday, the trading price of altcoins received some consolidations, sadly today, the trading price is showing a plunge towards the downward trading price. Almost all the top 10 altcoins by market cap have hit a 6-month low, this happened shortly after the massive decline of BTC’s trading price.
Stellar (XLM) the 10th most popular coin narrowly escaped the red zone, the coin is currently trading at $0.058, amassing a 3% profit. As at the time of writing, Litecoin, EOS, and Binance Coin have declined to their lowest trading point of 6-months following Bitcoin’s major sell-off pushed traders to quickly withdraw for the market.
In the last 24 hours, Ether declined by 2.35%, currently trading at $164 per coin, recording a loss of $60 for the past 7 days.
Bitcoin (BTC) Price Today – BTC / USD
Ripple is not left out of the price decline, currently, XRP is trading at $0.22, which is below 1.58% on the day. XRP is currently is the biggest loser amongst other altcoins by market value. Going by the altcoin price analysis, XRP is way above other altcoins after hitting its lowest trading price in almost 2 years. Bitcoin cash (BCH), Ether (ETH) and Bitcoin SV (BSV) experienced the least effect of the downward price flu after hitting just 4-month lows.
With the downward price movement of altcoins, several analysts are thrown into a state of contention as to which coin will get support first as most of the coin has passed below their 200-day moving average point, indicating a long-term market condition as at July. Going by the overall market cap as of September 24th, 2019, a total of $16 billion has been withdrawn out of the altcoin market excluding Bitcoin.
Other altcoins that declined and are experiencing exit of cash include EOS – 3%, BCH – 4.7%, while ADA and TRX are both experiencing losses close to 3%. Huobi Token (HT) is having is worst out of the altcoins, the coin is down almost at 5%. Currently, the total cryptocurrency market cap is at $213.5 billion, with Bitcoin making overall up to 68.2%.