Cryptocurrency prices may fall, but this does not mean that product development and acquisitions have stopped. Japanese financial services firm SBI Holdings bought 100% of TaoTao cryptocurrency exchange this week.
Thanks to its recent acquisition, SBI now has two cryptocurrency trading platforms. This indicates that the financial group is investing in and preparing to take advantage of the increasing circulation of cryptocurrencies in Japan.
While countries like China and South Korea have yet to fully transition to digital currencies, they are moving forward testing the viability of the central bank’s digital currency. The Central Bank of South Korea recently announced that it will begin the final phase of creating and distributing a pilot central bank currency for digital currency next year. However, the central bank has yet to reveal any plans to launch a CBDC.
In other news, the UK’s Financial Conduct Authority believes that retailers could lose their money if they trade cryptocurrency derivatives and exchange-traded securities. Therefore, the regulator banned these products from end users.
At the moment, it seems that negative news prevails in the cryptocurrency sector, and as a result prices, as well as investor sentiment, suffer. One of the positives is that lower prices at least make it possible to open new long positions.
Let’s take a look at the cards to see what possibilities are there.
Bitcoin / US dollar
Bitcoin (BTC) is currently stuck in a tight area, as evidenced by the narrowing of the Bollinger Bands. Previous cases of such a narrowing have resulted in strong trend moves. An uptrend was observed towards the end of July, and a bearish collapse in early September.
While it is difficult to predict the direction of the Bollinger Band breakout, the RSI can provide some insight as it is considered a key indicator for predicting price movement.
Currently, the RSI is in a symmetrical triangle that shows fluctuations between bulls and bears. If the RSI breaks and continues above the triangle, it will indicate a possible breakout of the price above $ 11,200.
Conversely, if the RSI breaks and continues below the symmetrical triangle, it will increase the likelihood of a new critical test of the support at $ 9,835.
ETH / USD
Ether has returned from the middle band, which is a 20-day simple moving average. This indicates that bears are selling bailouts prior to this resistance level.
If the price falls below the lower band and critical support is at $ 308,392, the Ethereum / USD pair could trigger a downtrend that could drop to $ 240. In recent days, the RSI has traded below the 50 level, showing an edge for the bears.
However, the bottom is currently flat and the bulls are likely to buy themselves a dip for that support. The first sign of strength will be a break and close (UTC) on the down line. A break above the upper band could indicate a resumption of the uptrend.
XRP / US dollar
On Oct 6, XRP tried to rally above the upper area, but the bulls were unable to contain the outbreak. However, in a positive sign, buyers have bought the $ 0.240 drop in the middle band and are again trying to push the price beyond the upper band.
The bands are currently unchanged and the RSI rallied to positive territory, indicating a decrease in selling pressure and that the move has been in range for several days.
However, if the bulls push price above the upper band and $ 0.26, it would increase the likelihood of a rally to $ 0.303746. This level may seem like tough resistance, but if the bulls can push the price above it, XRP / USD could test $ 0.326724 again.
BCH / USD
Except for the period from July 25 to September. In Chart 3, Bitcoin Cash (BCH) has been mostly pegged since April. Narrow bars on the bars indicate that price is stuck in a narrow area again.
On October 6, the bulls pushed the price above the middle range, but failed to hold the higher levels, and the price fell back to the lower half of the Bollinger Bands.
The RSI has traded below the 50 level in recent days, indicating a bearish lead. If the bears manage to push the price below the lower $ 209 band and the long-term support at $ 200, a downward trend to $ 140 is possible.
This negative view becomes invalid if the bulls can push the price above the upper band to $ 235 and $ 242 overall resistance. Above this level, the Bitcoin Cash / USD pair could rise to $ 296.87.