Bitcoin Sees Further Correction, Drags Altcoins Lower, ZRX and CRPT Gain, Sep. 30

Coins and Tokens 4 min, 20 sec READ

by Kevin George

0x and Crypterium are rare winners in a market that saw some heavy technical selling after Bitcoin lost the $10,000 price level.

BTC

Bitcoin led the cryptocurrency market lower with an 18% drop as the Bakkt exchange failed to provide a spark to demand. The technical sell-off saw BTC give up the $10,000 level and crash to support near $8,000. Despite the usual gloom that accompanies selling, the market is clearly moving from one support to the next and the move is a retrace of the market’s rally in 2019. It is expected that we will see further follow-through and the 61.8% Fibonacci level could be a magnet, with the 50 moving average also residing there. The market could look to base there before making another move higher but this will depend on the price action and news over the next few weeks. 

Support comes in for BTC around the $7,000 level and even if it gets there, the market would still be showing a gain of 75% on the year. The price of gold looks to have topped around the $15,500 level and the threat of further selling in the month ahead could be a further drag on BTC. The Federal Reserve continues to support the overnight lending market to October 10th so it may be worth watching events near that date to see if they can step away from the lending market without repercussions

ALTCOINS

BTC surrendering the stubborn $10,000 level has seen a sell-off across the market with double digit losses across the altcoin space. The chart shows the market attempted to get back above the 50 moving average and a rising trendline. The failure to take these levels saw the market retreating and like BTC, we can expect to see further selling to find the base. Getting back above the $66 billion market cap level would be key to signify further gains ahead but we are lacking any immediate catalyst. BTC is still holding its dominance with 67% of the overall cryptocurrency market value. 

ZRX

One coin that has performed well on the month is 0x (ZRX). Despite a losing week, the coin is up 30% on the month and is a rare winner amidst the market gloom. ZRX is currently finalizing its version 3.0 which is planned to go live on the mainnet in November of this year.

The project’s blog states that, 

v3.0 offers a lot more flexibility for every kind of participant in the 0x ecosystem over v2.0…

The V3.0 exchange will also see the launch of the coin’s staking program with the two working together. The minimum stake is set at 100 ZRX with a protocol fee set at 150,000 times the transaction gas price. 0x is a very flexible platform that gives developers the tools to build decentralized products that enable token exchanges. Two examples would be an eBay-style marketplace or tokenized gaming assets.

The price of ZRX rallied from a low of around $0.155 to trade at $0.26, which was a gain of over 60%. Last week’s bearish market has seen half of those gains given back but the 30% advance is still impressive compared to the overall market which is flat or negative. Resistance for ZRX was the $0.250 area and that will be the first target if we are to see another push higher.

CRPT

Another project that shook off the bearish sentiment was Crypterium, which saw gains of 14% for the week. The move higher in CRPT saw the coin move to number 86 in the list of coins by market cap with an overall value of $42 million. The project has only has 85 million coins in circulation which is relatively low compared to many in the cryptocurrency space.

The Crypterium App is a one-stop crypto solution that lets you store, buy, exchange, and transfer the following cryptocurrencies – Bitcoin, Ethereum, Litecoin, and USDC. The website already claims to 500,000 customers worldwide. 

One of the benefits of the Crypterium app is an ability to send digital assets using only a recipients phone number. If the recipient doesn’t have an e-wallet, the app will generate one for them and provide a link to download the app. This type of tool could be a key to getting cryptocurrencies out into a more mainstream audience and Crypterium is looking to provide similar user-friendly options to bypass exchanges. Other products available are a global Bitcoin card and the ability to make bank transfers, which utilize the traditional IBAN numbers but will ensure faster transactions and much smaller fees.

The CRPT token is used within the ecosystem as a fee for transactions with 0.5% of the trade value burned from the coin circulation. 

The technical selling in the cryptocurrency market is a sign of a market that was hovering around key levels and awaiting a fundamental catalyst. The FED's stabilizing of the REPO market has calmed the financial markets and it will be worth keeping an eye on events around mid-October to see if the bank lending market is functioning after last week's spike. In the next 1-3 weeks, we can expect further probes lower to find a base for a potential move higher once again.