On the announcement that China did decide to turn off BTC-to-fiat exchanges on Sep 30, the first move on the market obviously would be traders selling and encash their part so the decline in price is predictable.
However, there is no mean for any trader or investors in a global range to take any hastened reaction because after the sellers took control, very aggressive buyers await at the best buying opportunity so a bullish trend would be formed as it did.
Since Yesterday, double digit recoveries have been reach by almost all top-virtual currencies by market capitalization except Ripple which is at around 9 percentage point. For NEO (formerly known Antshares) this could be the best start of a weekend in a couple of weeks as it is recovering at 30% in the last 24-hours and going up at $22 for the moment.
The total market cap, after suffering yesterday major losses has regained control and moving upwards again after buying momentum that struck Bitcoin and following altcoin in a quick rally. It did drop on Sep 15 to almost $95 billion and now is at around $130 bln so its $40 billion in a day. On top of that the trading volume has risen from $7.8 billion in the last 24-hours to $11.06.
However this does not mean Bitcoin could be going on the first attempt right for the $5,000 levels.
High selling pressure is awaiting at $3,800 as it is almost reached (as time of the press) so another possible move for traders could be to wait for another test of the supporting levels at around $3,000 or the last lowest mark and then start off long positioning. Traders could use that opportunity with 25% of the allocation on lows just over $3,000 levels.
In general cryptocurrencies for the next days will be very much changing and very difficult to predict, so play on small profits with cautious.
For Ethereum, strong support was found at around $200 which will obviously be hoisting the price up, but a bearish trend could be waiting at $270 levels with pressure on the momentum. That’s why a retest of the last lowest marks or $200 supportive levels could be coming soon.
Bitcoin’s market for now is leading against the other altcoins as their are on the negative red zone when it comes to price “XY”/BTC which could lead to the other top cryptocurrencies to recover faster on price as result of the “following the leader” factor which has been major part the last weeks.
Digital currencies especially the top ones have become very changing and volatile so in any case traders and investors should keep the allocation size small as the market is very unpredictable for now.