What happened on Monday?

If you didn’t know what a panic in the market looks like until yesterday, now you definitely have an idea about it. Yesterday was a very clear reminder to all participants of the crypto world that this market has two significant shortcomings: FUD and the manipulation of quotes.

Unfortunately, the rise of quotations turned out to be just a pump, which was influenced by the good old “fake news”.

The thing is that the market was flooded with news about the blocking of the USDT withdrawals from Bitfinex and KuCoin. Then the news of the bankruptcy of the bank serving stablecoin Tether. And at the end, there was another batch of fakes supported by a fake screenshot from the site that Binance will be delisting USDT.

As a result, while the interested parties were “taken out” by the arbitrageurs, ordinary traders began to panic-sell stablecoin and buy bitcoin, because of which the rest of the platforms also began to move.

I think it is no secret to anyone that in a crypto world, the problems of any altcoin lead to the transfer of investments from it to bitcoin. But in the case of “panic attacks” during problems with bitcoin itself, it often led to the flow of funds from it to the stablecoin Tether, well, or to a trivial profit taking.

In general, this whole situation with Tether is quite indicative and more significant than it might seem at first glance. Do not forget that the rally in the cryptocurrency market in 2017 began in April with a large drawdown of this exact Tether. Probably the coin became a too big splinter, and, as a result, underwent a similar attack.

The result of all this can be seen on the charts: the BTC/USD rate on the exchanges where the “real” dollar was used differs significantly from its value on the platforms that work with Tether.

This is the main version of the events. The truth is, there is another that you can meet on the Internet. This version says about the failure of algorithms in the Asian Fund, as a result of which the robot began to heavily purchase bitcoin, whereas the fall in the price of Tether is just a coincidence.

One way or another, one thing is clear – the trust in Tether has been completely undermined: new doubts arise regarding the security of the currency with real dollars, which means that competitors have a chance to prove themselves and fight for the title of the main stablecoin.

BTC/USD

BTC/USD is being traded at $6,884 and is currently in a correction after its rapid growth. The situation returns to the same course: the price is rolled back, and traders gradually cease to shout about a turn. This pamp should shake up a community that has lived in serenity for a long time. It is possible that the rise of quotations and the breaking through of a number of resistance levels will change the mood in the market and increase activity, however, in the absence of new incentives, a return to the level of $6,300 will not take long to wait.

As part of the forecast for October 16, we can expect the development of a corrective movement. For a while, we will observe the movement aside. I want to believe that such a scenario does not stretch for a month. There are no obvious reasons for further growth now and, most likely, market participants will quickly calm down and the price will fall to its former range of $6,500 – $6,300. When and from what levels it will happen – extremely difficult to say. At the moment, there is an increase in the accumulation of selling positions in the market, this may lead to an additional increase in the region of $7,000 – $7,200 before the price falls.

Cancellation of the downward movement will be a continuation of the strong growth and the breakdown of the price level of $7,500.

ETH/USD

ETH/USD is being traded at $216.36 and is in the correction process. The situation is similar to bitcoin, the reasons for growth are the same, but if growth continues, or we will see quotes at $204.00 again – is difficult to predict now.

As part of the forecast for October 16, we can expect a continuation of the correction. Until the situation with the bitcoin itself is resolved, further movements on this coin will also be very ambiguous. Based on the fact that the growth occurred on fakes and it does not have any serious fundamental reasons, most likely, the quotes will return to their previous values at the level of $204.00.

Cancellation of the descent will be the continuation of the recent impulse growth, with the fixation of the price above the resistance level of $239.00. This will pave the way for the price to upgrade the maximum of $225.00.

XRP/USD

XRP/USD is being traded at $0.45600 and is in the correction movement, like previous coins. The coin has not remained aloof from yesterday’s events and has grown well too. How much this growth will change the mood of investors is not clear yet.

As part of the forecast for October 16, we can expect a continuation of the correction after yesterday’s growth. Probably for some time we will observe lateral movement, while market participants will regain consciousness and decide what to do next. But the forecast of the previous scenario is more likely. According to this, after the end of the lateral movement, we can expect a price reduction in the zone of the previous key support of $0.43500 – $0.41750.

Cancellation of this option will be a continued growth, in order to update yesterday’s maximum of $0.52500 and gaining a foothold above the level of $0.53000. If market participants change their previous bearish moods to the opposite, then we can expect further development of the upward movement to $0.55100.

XMR/USD

XMR/USD is being traded at $109.800 and is also in the correctional movement. The coin is in a similar situation, like all previous ones. The growth, to which price manipulation has led is slowly rolling back down. Lateral movement is due to a set of new positions and the adoption of decisions about its future actions depend on the market participants. Perhaps today they will understand the situation and the previous downward movement will resume.

As part of the forecast for October 16, we can expect the continuation of the correction. If movement in the market maintains its previous trend, then, before returning to the level of previous prices, we will probably be able to see an update of the nearest highs and testing the resistance level of $113.000.

Cancellation of the fall will be the continuation of growth, with a goal of $117.500. Fixing the price above this level will open the further path to $122.000.