MARKET UPDATE: 05.02.2018 CHINA IS LOVING THE FUD

China Loves FUD

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Hi guys, after some days off the Markets blogging I come back to update you on some insights on the current situation of the Market. Another week started today to let the Bears run across the Board. Numbers are deep in the red zone with the Top 20 coins on an average loss of 15% or more.

A hint of fresh air was felt last Saturday, but thanks again to PBOC's FUD and rumors we are now back in the red zone.

China goes further into the Witch Hunt

According to an article released by the South China Morning Post, see article here, PBOC announced that they would extend the ban to foreign Exchanges and ICOs which up to know where able to gather Chinese investors from abroad. After last September announcement, many players moved offshore to continue with the operations, being Hong Kong one of the chosen off-mainland destinations.

The article quotes mentioned above itself another Sunday publication, from a newspaper which is claimed to be affiliated to the PBOC.
Though this time the rumors seem to have a more trustable source, we can not fully confirm the claims.
What we can confirm is that Asia reacted quite negatively to the rumors, assuming China's investors will have a hard time to be participants in the market.

What lies ahead?

The whole Crypto markets look like a guy beaten down, and who as soon wants to step up and fight again, receives a harder hit from a Gang of Banksters. I am quite sure that all these were concerted from the dark rooms of Davos, well dark symbolically talking since as shown on one of my previous posts it was done at daylight, or should I call it "Camera light?

I am a Bull on Blockchain and Cryptos, but I have to admit that I am looking for this bloodbath to leave an 80-90% of the sh*coins out of the market. At the end is a good thing, you should not expect that the only one you invested (now in last December) to be the chosen one. This is not Matrix, guys, so there is no Neo, most likely 1500 coins which are like Agent Smith. A few truly valuable will come out of the mist, as shining warriors. Which ones? Well take your bet, and maybe now that all are at a discount, diversify your portfolio and hope for the best (this means = HODL) and also be patient.

The biggest bleeder?

I was hoping to see re-distribution of the market cap among coins, but apparently, BTC is still holding the podium, for the whole last week, BTC remains at the top, with a 35%ish of the whole Crypto Market. While some other coins, like i.e. XRB moved up and down, as also our favorite Steem which cannot make it to the top 20, so far.

The above mentioned could also indicate that people are not yet making decisions on the next winner.

Some BTC TA

As per the graphic below on 1-hour candle, we can see that a bearish short-term trend has been confirmed again, with a new lower low of at the time of press, USD 7351 per BTC. The purple color in the back is the mid-term channel started in January, for a break up on the upside a great Market move until 9.5K should be reached. Below, with all the FUD we are not in a position to say when this will finish.

Though from a TA point of view, this should be an intraday bottom, fundamental news are keeping the market on fire. RSI still indicates an overbought both in 1 hours as in 1-day candles.

Trading View link

Steem lose track

As mentioned above Steem has lost all the attention and a few positions while trying to make it to the Top 20. In the day it has come from USD 4.2 to now (at press time) USD 3.28. We see a good support level in this area; if the China new FUD news is priced in, a good rebound could be seen. In case there is a further down penetration, the low of January 17th of USD 2.8 could be visited again.

On the positive side, we need to consider this is good for those new users who are looking to Steem up their Power, since the STU calculation takes into account the USD price for Steem to calculate the SP for rewards for each post. for further calculations I recommend you to use this great calculation tool from @dragosroua.

Traditional markets also on fire

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Call it a coincidence, the red moon, or a so long awaited correction. Thing is the traditional markets are all on red, with numbers going from -1% to -5%. Saving the distance, we could say that 1% in the traditional markets is relatively close to a 5% in the Cryptos, so we see significant numbers eroded here. What is the impact on the Cryptos is hard to tell, unless the risk aversion sentiment impacts the same kind of traders, there should not be a correlation. From now on, we should keep an eye on it.