The price of the major cryptocurrency Bitcoin [BTC] dipped below the moving averages as on 19th Sept., however the bears couldn’t capitalize on the fall, after the worth climbed back, a succeeding day after. The 20-day EMA is flat while the 50-day SMA is bit by bit sloping down. The RSI is at the mid zone. All the indicators along with the price action recommend a state of equilibrium between the buyers and sellers.
If the Bitcoin [BTC] bears break below $6,500 USD, the next downfall is expected to be around $6,200 USD. The vital level on the downside is the support zone of $5,900 USD–$6,075 USD. If this breaks, we tend to anticipate panic mercantilism that may end in a steep decline.
On the top, a possibility of Bitcoin [BTC] out of $6,831.99 USD can attract purchasing and force the short sellers to cover their positions, driving the BTC/USD pair to $7,400 USD.
However, the volumes have dropped and there’s no assured trading either from the bulls or the bears. We’ve got to wait for either party to make a decisive move. Until then, sluggish, range certain action is probably going to continue. Investors who own long positions are expected to keep a protecting stop at $5,900 USD.
On the another hand, the second major cryptocurrency Ethereum [ETH] continues to trade below moving averages, that could be a negative sign. It’s expected that it would slide to the primary support at $192.5 USD, below a retest of the 12th Sept. low of $167.32 USD is probable.
On the top, if the ETH/USD pair breaks out of the moving averages, it will reach the peak of the $192.5 USD–$249.93 USD range. The digital currency would become positive if it will scale $250 USD. If the bulls sustain higher than the range, a rally to $322 USD is probable.
Earlier in year 2017 along with this year, Bitcoin [BTC] price volatility was a trending tropic. It had been cited jointly as of the key deterrents within the mass adoption of digital currencies. Forward to the last Qtr of year 2018, along with the 20-day historical volatility [HV] of Bitcoin [BTC] has fell to around 31.5%, below that of prime stocks like Amazon, Netflix, and Nvidia, whose HV’s are 31%, 52%, and 40% considerably.
FATF – The Financial Action Task Force, a world-wide anti- money laundering [AML] supervisory body, can established rules to monitor digital currencies by June next year. The FATF, a world-wide anti- money laundering [AML] supervisory body, can established rules to monitor digital currencies by June next year. This is expected a welcome step that may produce uniform laws and reduce the utilization of virtual currencies for laundering and terrorist fundings.