Cryptocurrencies Market Insight :: 13 February

BTCUSD

China is going to be more strict than people expect it to be. Latest development shows exactly that. AML/KYC crackdown is a legitimate reason to get control over capital outflow through crypto means. Here is a good overview of it: https://www.smithandcrown.com/global-bitcoin-markets-respond-threats-increased-regulation-chinese-exchanges

Hourly chart:

First red arrow on the chart is a result of closed meeting on 9th of February.

Second red arrow is a result of the news about Yunbi increasing the fees and CHBTC suspending ETH&ETC withdrawal which has somewhat of a spillover effect from BTC (https://twitter.com/cnLedger/status/831059294522990592). Unless we see a clear guidance from PBOC about further BTC/crypto trading — we are in the midst of bad news cycle. Consequently, every time a new grim twitter update about Chinses exchanges getting their withdrawal and AML/KYC policies airtight will appear — bitcoin price will take a beating. So far bulls are shrugging it off. Let’s see how long the can push against Chinese news flow. We can see 950 by mid-week if we see a break of an uptrend.

On a good news, VP Pence hires Mark Calabria, a libertarian advocate of free markets, as his chief economist. Mark is a known supporter of bitcoin: http://www.politico.com/blogs/donald-trump-administration/2017/02/pmark-calabria-chief-economist-trump-234845

ETHUSD

With recent bitcoin turmoil originating from China, there is a strong correlation effect on the price as a lot of Chinese are using ETH to avoid withdrawal limits, etc. Thus it is hard to discuss ETH as a standalone currency when it effectively mirrors bitcoin for the time being. Black line on hourly chart is BTCUSD.

ETCUSD

Classic is somewhat less correlated to BTCUSD price (black line on chart), but still big moves especially ETH&ETC withdrawals obviously have an influence and create significant downward pressure on the price.

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