Early today, the cryptocurrency market has gained $20 billion reaching $222 billion milestone, rising from $212 billion to $222 billion. The rise comes from the important news, which SEC will accept or reject the ProShares ETF at August 23th, 2018. The daily trading volume still stands at $12 billion, with gains recorded by some cryptocurrencies canceled out by others.
The Bitcoin price could break the $68xx resistance and pump ahead to $7000-$7200 in the next few days, if the hype still continues. Unfortunately, Bitcoin price has deeply dump from $66xx, and at the time I'm writing this post the price stopping at $64xx. So what's the reason behind this dumping? And what is the next move for Bitcoin price?
1/ The reason for the huge dumping
One of the largest exchange, BitMEX, has announced about their DDoS attack. As we know, cryptocurrency market is very sensitive to both bad and good news, especially at this time (many people and funds are waiting for SEC's decision on Bitcoin ETF). So, with the hacking problem coming to BitMEX exchange, the Bitcoin price has dropped for more than $200, after pumping in the early today.
2/ What is the next move for Bitcoin price?
After a huge dumping from $67xx, BTC failed to break the hard 6800 resistance. Looking at the chart, the 4H timeframe has created the Head & Shoulder model (with left and right shoulder stops at $6800 region), showing some bearish on BTC.
There are two scenarios for BTC price in upcoming hours. First, August 23th, 2018 is a special day for Bitcoin, the ProShares' Bitcoin ETF will be considered by SEC. If SEC reviews and accepts the Bitcoin ETF from ProShares, there will be a huge pumping for Bitcoin (consider BTC can break through $6800 - $7200 -$7800 - $8200 and more). But, the second scenario has a higher chance to happen. When SEC decline and delay the Bitcoin ETF again, the market will loose its incentives to move up, therefore people will selling their BTC.
When looking at the 1D timeframe, we saw a really bad candlestick pattern. If the second mentioned scenario happens, it can be a bad dumping for Bitcoin price in the next few days. The $6800 region has become the hard resistance zone and $6000-$6200 has become the support zone. With both resistance and support zone, Bitcoin price can sideway for many days after finding its new direction.
Both August and September would be a volatile time for Bitcoin, after ProShares' Bitcoin ETF, we still have three more ETFs to go. If those ETFs are being passed, we could hope for the great breakout of Bitcoin price and creating a new top for the whole cryptocurrency market in the near futures. But if all those ETFs are delayed or rejected, we could see BTC break through the $6200 zone, and coming to the $5600 zone, if worst there would be a chance we see BTC at the price $4400.
I will try to give more detail market analysis as soon as possible. If you see this article is helpful, please share it and give it a vote.
