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Low-Volume Bounce

BTC: Price: $8,350 | MCAP: $150 billion | 24-Hr Volume: $15.82 billion

Short-term trend: Bearish

Bitcoin picked up a bid at lows near $7,700 yesterday and rose to a high of $8,519 on Bitstamp earlier today. The rally, however, lacked volume support and could be short-lived.

Also, the bounce ended up forming a rising wedge – a bearish reversal pattern – on the hourly chart. The pattern was breached to the downside a few hours ago.

The wedge breakdown indicates the corrective bounce has ended and prices could fall back below $8,000 in the next 24 hours.

The bearish case would weaken if prices rise above $8,500 with strong volumes. That could yield another $300-$400 rally.

Long-term trend: Bearish

Bitcoin closed below $9,049 on Sept. 30, confirming a bearish inside bar candlestick reversal on the monthly chart.

The cryptocurrency had charted consecutive inside bar candlesticks in July and August, indicating indecision or consolidation.

The tug of war between the bulls and the bears ended with a 20 percent drop in September.

Put simply, the path of least resistance is to the downside and a drop to $7,000 or even lower could be see in the next few weeks. Popular analyst Josh Rager believes BTC could drop to $6,600-$6,300 where there is major interest.

The bearish setup would be invalidated if and when prices find acceptance above $9,049.

Read Analysis

Bitcoin Diamond Starts To Climb

BCD: Price: $0.46 | MCAP: $95.3 million | 24-Hr Volume: $2.7 million

Short-term trend: Neutral

Yesterday's bullish candle rose to stand 14.65 percent up on the day, positioning it as the best performing crypto of the 100 at CoinMarketCap after 4 days of sideways ranging.

However, price action remains relatively poor given the low liquidity seen via 24-hour volume (not shown) and a lack of willingness by the bulls to push higher on today's open.

A firm close above $0.50 would provide greater directional bias in favor of the bulls should that occur within the week.

Long-term trend: Bearish

BCD remains firmly bearish long-term courtesy of BTC's breakdown on Sept. 23-24 and will only begin to show signs of a recovery from the recent sell-off should momentum build beyond $0.50 and $0.60.

Watch out for a bull signal on the awesome oscillator (AO) with the histogram bars moving above 0 to confirm the bull reversal.

Ziliqa On the Wedge

ZIL: Price: $0.0051 | MCAP: $45.5 million | 24-Hr Volume: $17.8 million

Short-term trend: Bearish

ZIL is caught between a rising contracting wedge formation on the daily chart presenting another possible bear breakdown should prices fail to rise above $0.0055 in coming days.

The daily RSI demonstrates weak price action from buyers but the indicator does rest along oversold territory, presenting a possible opportunity for a bounce should prices fail to drop further on the week.

Long-term trend: Bearish

The awesome oscillator (AO) shows a willingness to edge above the neutral 0 line but until that signal is given, combined with the lower low, lower high market structure ZIL remains firmly bearish in the long-term.

The U.S. Securities and Exchange Commission (SEC) on Monday penalized EOS maker blockchain firm Block.one for raising the equivalent of several billion dollars (a total of $4.1 billion) over a one-year period in an unregistered initial coin offering (ICO).

Block.one announced that it settled a dispute by agreeing to pay $24 million to the SEC.

EOS, the seventh-largest cryptocurrency by market capitalization, gained more than 6 percent on Monday despite the SEC’s decision to penalize Block.one, possibly because the fine was just 0.6% of the total raise of $4.1 billion.

In fact, the fine imposed by the SEC was less than what Block.one paid for a website Voice ($30 million).

SEC’s fine of $24 million drew criticism from the crypto market community. For instance, popular analyst @Rhythmtrader tweeted, “the SEC's latest fine is nothing new, EOS just learned how to play the game.”

Many believe that the regulator has set a wrong precedent – blockchain companies can raise huge amounts of money via illegal activities and get away by paying a small fine.

Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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