OKEx Withdrawal Freeze Shakes up Crypto Market – Price Analysis, 19 Oct 2020
Last week the crypto market was shaken by the suspension of cryptocurrency/digital assets withdrawals on OKEx, one of the biggest exchanges.
OKEx explained the cryptocurrency withdrawal suspension with being "out of touch" with one of the private keyholders, preventing the "associated authorization" from being completed. The exchange clarified that the keyholder was "currently cooperating with a public security bureau in investigations where required".
However, the negative impact of this event on the prices of the major cryptocurrencies was short-lived, and the market drifted sideways.
Moreover, the crypto community remains very optimistic. For example, Raoul Pal, a former Goldman Sachs hedge fund chief, said in a YouTube interview that Bitcoin would surge to $1 million in 5 years because of the increasing interest of institutional investors. Moreover, the financial expert outlined that he had allocated more than 50% of his capital to Bitcoin.
The crypto market starts the week with relatively low volatility. At the time of writing, according to Coin360.com, one Bitcoin costs €9,539.85 (+0.14%), one Ethereum – €319.30 (+0.68%), and one LINK – €9.16 (-0.87%):
Source: Coin360.com (Daily crypto market performance)
Now let's have a look at the price charts of the top cryptocurrencies against the euro.
In the 4-hour chart (4H), BTC/EUR has formed an Ascending Channel and is currently fluctuating near the upper line (resistance line) of the channel:
From a technical perspective, there are three scenarios – bullish, bearish, and neutral.
In the bullish scenario, the price of Bitcoin will continue to track gradually upwards near the resistance line. This way, it may reach approximately €10,150.00 by the end of the week.
If the bears take control over the market (bearish scenario), then the price of Bitcoin may sink to the lower line (support line) of the channel or approximately to €9,350.00.
However, in our view, BTC/EUR will move sideways and remain relatively stable during the current week (neutral scenario).
The price of Ethereum has been relatively steady recently. In the daily chart (1D), ETH/EUR has been consolidating near the 38.2 Fibonacci retracement level:
We estimate that ETH/EUR will stay range-bound throughout the week. The lower bound of the range is the 23.6 Fibonacci retracement level, which is equal to €297.29. The upper bound is the 50.0 Fibonacci retracement level or €336.33.
In the 4-hour time frame, after exiting the Bullish Flag LINK/EUR is trying to form an uptrend:
The most likely scenario for LINK is fluctuation within the potential uptrend. Keeping in mind that LINK is more volatile than Bitcoin and Ethereum, the price of the cryptocurrency may decline to €8 and increase to €11. However, this is still within the trajectory of the upward movement.
In general, we think that the crypto market is trying to begin a new accumulation phase.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.