16.10.201807:55 Forex Analysis & Reviews: Bitcoin analysis for 16/10/2018

Yesterday, global crypto investors have witnessed high fluctuations in the cryptocurrency market for the last weeks, where we have seen clear increases. Violent movements were triggered by Tether (USDT), which was peged 1: 1 against the dollar, then lost its dollar peg and is already traded well below the historical range of transactions.

Although the reasons for the decline in USDT prices have not been confirmed, there have been reports of an alleged loss of market confidence that led to a possible sell-off: yesterday, some financial press articles suggested that investors are "losing faith" due to the persistent lack of transparency. In the past, critics accused Tether of operating partial reserve and covering her alleged reserve deficit. At the end of June, unofficial Tether control confirmed that stablecoin had the right amount of shares in dollars compared to the issuance of a token.

On October 8, Bitfinex exchange was also asked to officially reply to internet rumors that the stock market was insolvent and perhaps struggling with banking problems. In response, Bitfinex said that all allegations related to Noble Bank International and Puerto Rico - the stock exchange's banking partner - have no impact on its performance, viability or solvency. A few days later, Bitfinex temporarily suspended all deposits for the euro, the US dollar, the Japanese yen and the pound sterling. In an original statement on October 8, the stock market showed that complications still exist for Bitfinex in the field of fiat transactions, but it was also written that this is something common to most organizations associated with cryptography. On October 15, Bitfinex published another statement in which it announced that the new deposit system would be available one day later.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The extraordinary situation with Tether had a significant impact on the price of Bitcoin, which a few hours ago reachedalmost $ 7,000. Its current price is $ 6,387, which means an increase of 5.2% compared to the previous day. The price rally was capped at the level of $6,720 and the candle closed at the level of $6,166. The next technical resistnace is seen at the level of $6,413 and $6,455, but the most important resistnace zone is still between the levels of $6,549 - $6, 603. Bulls are still in control in the market, at least for a short period of time.