Mixed action today as most crypto assets are showing early signs from a recovery after yesterdays plunge.
Yesterday, there were a couple of news items that seemed to be weighing on the market. Most significantly, the SEC issued a statement on cryptocurrency regulation (You can find it here). And separately, one of the largest cryptocurrency exchanges in the world was experiencing troubling "irregularities" in trading activity.
My opinion
SEC:
Okay, they will tighten some regulations but I don't understand why this is something to be scared about. They won't ban it (not today haha). Regulations are a good thing. The crypto market needs to go trough this so it can take it's next steps...
Binance:
This news seems to be overblown. After all it wasn't a pure hack...
The drop:
Well, this was something that I saw in the charts. I warned you guys for this so it didn't surprise me at all. There is still some downside left and there is still a small possibility that this could extend further south. Don't buy all in once. I will start buying when we dip below $9000 in BTC
News
Crypto bull John McAfee says SEC is striking out ‘in panic’ at digital currencies
Bitcoin falls after SEC warns of 'potentially unlawful' platforms
Japan punishes seven cryptocurrency exchanges over regulatory lapses
Top 10 - Snapshots
This is a GIF that jumps every 10 seconds to another crypto asset.
Top 10 - Change Since Previous Close
In U.S. dollar
Cardano is still losing ground. While Monero is the biggest decliner. Do I hear "profit taking?"(Zoom in.)
In BTC
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Top 10 - 24h Change in volume.
Every top 10 crypto is showing a pick up in volume. I haven't seen this in a while...(Zoom in.)
Top 10 - 7 day change
Monero is still up on a 7day basis despite the profit taking...(Zoom in.)
Top 10 - YTD Change
In U.S. dollar
Bitcoin cash and Monero dived into negative territority for YTD. Will Ethereum follow?(Zoom in.)
In BTC
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Top 10 - Market Cap
Overview
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Change since previous day
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Crypto vs The Dow Jones
Bitcoin and Ethereum in the Dow Jones
A 5.9% drop in the market cap of the Dow Jones equals to a total wipeout of the crypto space. Let that sink in.(Zoom in.)
Daily gain/loss
Both lossed more or less the same amount in market cap. Yet nobody cared about those Dow Jones losses while the cryptomarket experienced a "flash crash". Putting things into perspective... (Zoom in.)
Precious metals
Change since previous close
Not so much action in the precious metals market today. There are waiting for Mario Draghi his speech.(Zoom in.)
YTD change
ETH is still losing it's YTD gains. Can it hold?(Zoom in.)
Daily Bitcoin/Gold ratio
One bitcoin buys 7.64 ounces of gold today. The resistance that I highlighted on Sunday, did it's work. Today, we have to focus on that 50dMA again. Ooh btw, there is a possibility that this ratio will drop towards 5.4. That means that gold will rise and bitcoin have to drop again. So there is still some room on the downside. (Zoom in.)
Daily Ethereum/Gold ratio
One ethereum buys 0.58 ounce of gold. Ethereum looks cheaper in comparisation with BTC. There is still some downside left but I think that we're approaching a nice buying opportunity. (Zoom in.)
You can see that this ratio topped at 1.05 ounces and then it dropped hard. This is remarkable because Bitcoin did the same thing when it touched 1.05 ounces of gold back in march 2013. Watch here!
Alternative data
Twitter @Bitcoin
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Twitter @Ethereum
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Interest in BTC and ETH is back at normal levels. Considering this, I think that It's almost time to buy again! And the interest in ETH actually increased a bit since yesterday. That's remarkable because the ETH/Gold ratio showed us that there is some support there.
