Did you have a chance to glance at the crypto markets performance last weekend? If not, let us bring you up to speed. Yesterday, Bitcoin went on a rally and took the market to the greens with over $200 rally to break the $6800 resistance before pulling back to $6700.
Fast forward Monday, in the early Asian Markets today, the market has fallen back and volume has dropped from $12 to $11 Billion which shows a slowdown in momentum. Total market capitalization has shrunk by 1.3% on the day to $273 billion and could not break over the $280 billion barrier.
The lack of volume has taken most of the cryptocurrencies on the red again with most losing majority of the weekend gains.
Bitcoin is steady and ranging at $6700. On the technicals, MACD is heading downwards, as well as StochRSI, RSI, and Money Flow Index. Volume is down as well and there are more sellers than buyers at the time of this writing. However, the Heikin Ashi candle has printed 2 reversal candles in the 4 hour chart so there still might be a chance of $7k today.
Ethereum has pulled back 1.5% in the past 24 hours to trade at $485. At the time of this writing. MACD is on the bearish side but about to go south. Yellow SRSI has gone oversold and green RSI is turning down just above 40. The Money Flow Index is heading down to oversold.
Most of the altcoins in the Top 10 are in the red at the moment except Stellar (XLM) at 0.38% and USDT at 0.03%. Currently, USDT volume is over that of ETH at $2 Billion.
The biggest loser currently is EOS which has has the biggest slidein the top ten, falling by -5.6% on the day to $8.57. This takes it on the same range as last Monday and trade volume over the past day has been circling around $500 million. It has recently been in the news as EOS New York, a top 21 EOS block producer, recently announced that a number of the controversial crypto platform’s Block Producers “crashed,” presumably due to their poorly configured systems.
It has revealed that a number of block producers “crashed” after the network’s RAM usage “exceeded 1 GB.” Per the BP, these either “did not confure their node to properly set it at 64 GB,” or only had 1 GB.
According to EOS New York, the block producers whose systems reportedly crashed were not following the guidelines outlined in their agreement. Therefore, the US-based organization implied they are at fault, although it is still confirming details.
In the Top 20, the biggest loser with a 4.8% fall on the day to $2.48 is VeChain. Scrolling just below it is OmiseGO and Ontology which have both lost between 5-6% taking all the g wiping out all gains over the past 48 hours.ains over the weekend.
In a streak, Tezos once again has continued to climb and according to Coinmarketcap has gained for the third day in a row, today by 2.8%. Currently trading at $2.21 XTZ is marginally up from $2.13 this time yesterday.
On the Top 50, at the 33rd spot is another straggler on the green, where DigiByte can be found trading 10% higher. DGB is currently at $0.042, up from a low of $0.036 yesterday. Only Mixin and Monaco are showing double digit gains at the time of writing. Bitcoin Diamond is suffering the most with a 24% fall on the day.
The Chinese crypto market once dominated the crypto space, accounting for 90% of all global trades according to a report in atimes.com. But that was before Bitcoin led cryptocurrency on an unprecedented bull run in the latter part of 2017 which spread fear throughout the banking world and resulted in a tightening of regulations over the space in most countries.
Then, China outlawed initial coin offerings (ICO), a popular fundraising method for crypto companies, in September of 2017 while cracking down on crypto trading, supposedly to combat scams. Since then officials have shuttered 88 cryptocurrency exchange platforms and shut down 85 ICOs.
Recent data shows that the Chinese Yuan is currently being used in less than 1% of crypto-trades and the Central Bank of China is calling the country’s crypto ban a huge success.
Zhang Yifeng, a blockchain analyst at the Zhongchao Credit Card Industry Development Company said of the new data:
“The timely moves by regulators have effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend,”
Although there is an ICO Ban, China is moving forward with raising crypto infraastructure and heavily invested in blockchain technology projects. It may lead the world in crypto mining and has been working on a national cryptocurrency that would be issued through the Peoples Bank of China. Officials from the PBoC and regulatory bodies in the government have made pledges to support global regulatory frameworks if they are ever created.
While there is a definite loss of revenue, this doesn’t seem to bother financial commentators speaking on the country losing 89% of its crypto trading market. As Guo Dazhi, research director at the Zhongguancun Internet Finance Institute, concurred:
“This indicates that the policy has been very successful. It is within expectations that the Yuan’s share in global Bitcoin transactions would drop after China announced the ban.”