Cryptosquawk

Weekly Market Analysis of Cryptocurrencies

We report the traditional weekly crypto market analysis based on the contribution by Aayush Jindal (Cryptonews.com). The analysis was made on September 11.

After trading close to $10,500, bitcoin price started a downside correction. BTC traded below 10,350, but it remained well bid near the 10,200 support. As long as the price is trading above 10,200, it might revisit the 10,400 and 10,500 resistance levels. Conversely, a downside break below the 10,200 support may perhaps push the price towards the main breakdown support at 10,000 and 9,850.

Ethereum price declined below $365, but it found support near 360 and 355. ETH is trading above 360, but the bulls need to clear the 370 resistance convincingly to start a steady increase. The next key resistance is near 380. On the downside, there are two important supports near 360 and 350. A close below the 350 support may perhaps increase bearish pressure and the price could decline towards 330.

Bitcoin cash price is stuck in a range above the $220 and $218 support levels. BCH is facing a significant resistance near 230. A clear break above the 230 resistance might accelerate the rise. In this case, the price might climb towards the 250 resistance.

Chainlink (LINK) is consolidating above the $12.00 and $12.20 support levels. The main breakout zone is near 13.00, above which the bulls might gain strength. The next target for them could be 14.20 or even 15.00. On the other hand, a clear break below 12.00 could lead the price towards the 10.80 support.

XRP price is down over -2.0% and it failed to stay above the $0.242 support. The price is currently holding the 0.238 support, below which there is a risk of a larger decline. On the upside, the price could gain strength if it clears 0.242 and 0.245.

In the past three sessions, a few altcoins gained over +5.0%, including CEL, STORJ, IOST, ONT, GNT, YFI, ZRX, ICX, LRC, NEO, MANA, YFII, and ZB. Out of these, CEL and STORJ rallied more than +15.0%.

Japan Lags ‘Six Years Behind China’ in CBDC Race

Tim Alper (Cryptonews.com) writes that 'Japan could be as much as six years behind China in digital currency progress – and may also be lagging behind its largest East Asian rival in the tech stakes when it comes to blockchain, according to a Japanese expert.

Per a column published by Japanese media outlet Record China, former Pan Pacific director and long-time China observer Yusuke Takano, China is now attempting to “lead the world in the [blockchain] sector through a concerted national effort.”

Takano claimed that while Japan was clearly making blockchain-related efforts, these often paled in comparison to those being made in the Middle Kingdom.

The columnist stated that a look at blockchain conference diaries proved how sincere Beijing is about all things blockchain-related. He pointed out that although a major event co-hosted by the chief financial regulator, the Financial Services Agency, and the Nikkei media group was held in August, four major blockchain events were held in China in the same month.

What is more, four more major blockchain conferences are slated to take place in China before the year’s end, while Tokyo may have to wait until 2021 for its next major blockchain event.

When it comes to central bank digital currency (CBDC) progress, Beijing also has the upper hand, the columnist added, as the Chinese central bank launched a CBDC research unit all the way back in 2014.

Takano noted that a slew of news articles have appeared on Chinese state-affiliated websites of late, pointing out the similarities between the digital yuan and e-pay platforms like WeChat Pay and Alipay – a possible sign that a rollout is forthcoming.

The central People’s Bank of China (PBoC) spoke about replacing cash with digital currency all the way back in January 2016, and it was at this point that the digital yuan project was launched “in earnest,” Takano noted.

He added that in mid-2018, Chinese state TV broadcasters aired a series of programs denouncing cryptoassets, but championing blockchain technology, extolling the virtues of “no-coin blockchain technology.”'

Bitcoin Stuck at $10.3K

Daniel Cawrey (Coindesk.com) wrote that "It was a quiet day in the bitcoin market while there was action on Uniswap’s total crypto value locked.

BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.

The price of bitcoin was struggling to trend upward Friday, staying in a narrow $10,200-$10,380 range to start the weekend.

“Bitcoin has traded off this month with other risk assets, such that it is now short-term oversold near former resistance in the $10,055 area,” said Katie Stockton, managing partner at Fairlead Strategies. “We expect the pullback to keep its hold in the near term from a momentum standpoint.”

Indeed, bitcoin’s volume numbers Friday were tepid at best, with USD/BTC trades on spot exchanges amounting to just $210 million, whereas daily averages the past month had been $393 million.

Yet, this could be an inflection point for the cryptocurrency, according to Neil Van Huis, director of institutional trading for crypto liquidity provider Blockfills. “Around $10,500 is really the middle of range from a previous breakout from consolidation around $9,000 all the way up to the roughly $12,000 we’ve seen recently,” he said. “If we can stay above $10,000, I’m encouraged and remain bullish. If we stay too long below $10,000, I think we could be more susceptible to a re-test of $9,000.”

The bitcoin options market appears to be picking up during this low-momentum period and that is an ominous sign, according to William Purdy, an options trader and founder of analysis firm PurdyAlerts. “Bitcoin option open interest is increasing. This suggests a continued downward trend,” noted Purdy.'