- BitMEX was just charged with violating the Bank Secrecy Act and conspiracy to violate the same act.
- Samuel Reed, the co-founder of BitMEX, was arrested this morning.
- The entire cryptocurrency market plummeted after the news.
The total crypto market capitalization has lost around $13 billion in the past two hours after BitMEX news were released. Bitcoin is down 2.5% and is trading at $10,516. Similarly, Ethereum lost around 3% of its value while bears continue eying up further gains. XRP is also down 2.6%, losing a few crucial support levels.
Bitcoin could be the most affected digital asset
It’s important to note that BitMEX holds a significant portion of all Bitcoins in circulation. The BitMEX vault holds around 193,000 BTC, which is worth around $2 billion at current prices. It is unclear what will happen to the Bitcoin inside, but it’s having a significant impact on the price of the flagship cryptocurrency.
BTC/USD 15-minute chart
-637371755489535364.png)
On the 15-minute chart, the price has established a temporary bottom at $10,520, but according to our latest analysis, there isn’t a lot of support until $10,000 as most traders are shifting towards a bearish outlook. The shorts vs. longs chart is also flipping in favor of sellers.
Can XRP hold a crucial support level?
XRP has been one of the weakest cryptocurrencies throughout 2020 and a significant portion of 2019. The digital asset is still down 93% since its all-time high at $3.3.
XRP/USD daily chart
-637371755891299862.png)
XRP is currently trading at $0.236 after losing the 100-SMA on the daily chart. The 100-SMA was acting as a strong support level but was lost due to BitMEX accusations. The last low on the daily chart was established at $0.222. This level is a critical support level that, if broken, would take XRP down to the 50-SMA at $0.215.
XRP Holders Distribution
 [20.38.36, 01 Oct, 2020]-637371756045375538.png)
Looking at the Holders Distribution chart, we can observe that the downtrend that started on September 26 continues. The number of whales with at least 10,000,000 XRP coins has declined from 313 to 310, losing another holder today.
XRP/USD 4-hour chart
-637371756192575223.png)
The price has slipped below the 100-SMA and the 50-SMA on the 4-hour chart. If bulls cannot push it back up above at least the 50-SMA, XRP will most likely drop to $0.222 in the short-term. The MACD has also turned bearish on September 29 and shows more bearish strength now. The last time this indicator was negative, the price of XRP eventually saw a 13% correction.
Ethereum is holding better than the rest
Ethereum is one of the few cryptocurrencies that has enough influence in the market and many trading pairs to break its correlation with Bitcoin somewhat. For instance, back in July 2020, ETH was the first currency to see a breakout exploding from $250 to $311 within days, while Bitcoin remained trading below $10,000.
ETH/USD daily chart
-637371756419468038.png)
Nonetheless, Ethereum price is also down today but holding better than Bitcoin or XRP. The 100-SMA was not lost on the daily chart and will serve as a healthy support level. It seems that ETH price has formed a falling wedge on the daily chart with the 100-SMA as the first support level. If the SMA fails to hold, the lower trendline will be the next target for the bears.
ETH IOMAP Chart
The IOMAP chart shows strong support between $341 and $350, where 9 million ETH was bought. However, below this range, the support is not great, which means $341 is a critical level to hold. A bearish breakout will most likely drop Ethereum down to $310.
On the other hand, a successful defense of the 100-SMA and a breakout of the falling wedge's upper trendline would be a strong bullish sign. This bullish pattern usually indicates that a reversal could be nearby after a downtrend. The target for bulls is the 50-SMA at $385.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Latest Crypto News & Analysis
Editors’ Picks
Ethereum 2.0 sees ray of hope after multiple delays and internal conflicts
Ethereum price showed an excellent bullish outlook as it rallied from the range low to retest a resistance level just below the range high. While this upswing was stellar, it might be coming to an end as the Momentum Reversal Indicator (MRI) flashed a sell signal.
XRP price lacks enthusiasm as Ripple shows no signs of hope in resolution with SEC
XRP price appears to be consolidating after a rally of 50% since its swing low on July 20. New development on the Securities & Exchange Commission (SEC) case against Ripple Labs has revealed that the lawsuit is likely to continue, with no end in sight.
Cardano Price Prediction: ADA bulls attempt retest of $1.50
Cardano price is currently hovering around a crucial support level, but a minor pullback before a new leg up seems likely. Therefore, investors can expect ADA to correct critical demand barriers.
Dogecoin price might slide 20% as on-chain metrics scream sell
Dogecoin price set up multiple higher highs since July 17 but is currently showing weakness, indicating a shift in trend. On-chain metrics suggest that losing a critical support level might trigger a slew of selling pressure, pushing DOGE lower.
Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.