Crypto Recap March 12: Bitcoin Fails at $10k, Shocking Findings on Volume

in #cryptocurrency6 years ago

Market Summary

The crypto market could not find enough buyers to see a bullish follow-through extension on Monday, although Sunday's reversal in Bitcoin remains a valid set-up while $8.4k support holds. Bitcoin closed at $9.2k after a failed attempt to break the $10k immediate resistance. The best performers of the day included Cardano, NEM, and VeChain, all hanging onto recent gains, while the rest of Alts saw losses of 4 to 7% on average in the last 24h. The (artificially) market value stands at $470b.

The total number of transactions was quite uninspiring. Whether or not it had an impact, it's worth noting that an article titled 'Chasing fake volume: a crypto-plague,' by crypto-trader Sylvain Ribes, garnered plenty of attention. The report includes publicly available data to create a model in which it reveals how much of the trading volume in popular crypto exchanges is non-existent. The findings were astonishing, especially on the Chinese-based exchanges OKEX and Huobi, but also in Binance.

"A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market. What I did not expect was the magnitude of the fraud," Ribes writes.

As much as $3 billion dollars of daily volume could essentially be nonexistent. The report may have certainly had an impact on the overall confidence of participants, as it'd suggest that the market is artificially inflated by a large margin.

In the short-term, as any news with negative connotations, it may lead to uncertainty and loss of trust but it definitely adds to the bullish macro picture, as it implies the market is nearing under-valued levels based on a logarithmic regression non-linear chart.

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Throw into the mix the recent findings by Fundstrat Global Advisors co-founder Thomas Lee, who recently stated how depressed the bitcoin misery index is. Lee hints that we are nearing a great time to be invested in Bitcoin, if only based on his proprietary index.

"Think of this index as a way to measure how happy or sad you are owning bitcoin. As of Friday, the index was around 18.8 on a scale of 100, telling us that bitcoin holders are miserable right now," Lee said and added that "when the bitcoin misery index is at 'misery' (below 27), bitcoin sees the best 12-month performance. The last four times this was below 27...there was not a single instance with bitcoin not up 12 months later."

"The index is telling us, it's really tough to own it for the next week or even two weeks, three weeks. But we're getting through this," Lee concluded. Think about it for a second, the misery is the lowest it's been for years and yet Bitcoin was until a few hours ago re-testing the $10k level, food for thought.

What would the value of Bitcoin and the entire market be like when the index recovers its footing? As we like to reiterate, think on the big picture.

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* Headlines below are listed in chronological order, as seen in CoinLive News Terminal

Top Headlines Industry / Regulations

Top Headlines Crypto-Asset Fundamentals

content_top_gainers_12.03.jpgKey Events on Top Cryptos for Mar 13 (Tue) **

  • Bytecoin (BCN) - AMA on Reddit
  • Dash (DASH) - Money20/20 Asia in Singapore
  • Gas (GAS) - Koinex lists GAS
  • Monaco (MCO) - Meetup in Singapore, Money20/20 Asia Sponsorship
  • Nebulas (NAS) - Meetup in Kensington
  • NEO (NEO) - APAC Blockchain 2018 in Melbourne
  • Nexus (NXS) - APAC Blockchain 2018 in Melbourne
  • Quantum Resistant Ledger (QRL) - APAC Blockchain 2018 in Melbourne
  • Ripple (XRP) - Money 20/20 Asia in Singapore
  • SophiaTX (SPHTX) - NEWMATEC 2018 Conference in Tále
  • Stellar (XLM) - Meetup in Singapore
  • VeChain (VEN) - APAC Blockchain 2018 in Melbourne

source: www.coinmarketcal.com

Main Gainers / Losers Top 100 Coins

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Hey @coinlive, the markets are pretty crazy right now. Crypto is back to a weird space but I know long term it's still what we're all hoping it will be! Cheers

@exxodus Agree 100%! In times like this patience is the greatest asset one can have and also keep an eye on the fundamentals, if they don't change, it's a matter of time until we see bright green! Cheers!

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