Bitcoin Finding Buyers to Support $10K
|The cryptocurrency markets have taken a downward bias, especially the bitcoin, who loses close to 300 points in the last 24 hours. We see also Ripple dropping 3.3%, ETH down 2%, while Litecoin seems to hold, losing only 0.31% at the moment.
The sector market capitalization is below $259billions, while Bitcoin dominance descended to 69.6%.
On the news front, we read that Facebook is seeking Payments license in Switzerland while a third-party audit company has found vulnerabilities in the Libra code. We also learned that A DeFi weighted index, DeFix, has been launched by Nasdaq to track blockchain-based projects on decentralized finance. Also, Hong-Kong-based Tether has announced an Offshore Chinese Yuan stablecoin, CNH.
Technical Analysis.
Bitcoin
The triangle structure was resolved to the downside. That wasn't unexpected as the price was moving near the -1BB-line. Currently, the price is finding sellers on small rallies and buyers on dips approaching $9,900. The volume has increased a bit as compared to the previous candles but is not a panic selling. The four previous 4H candlesticks show how buyers and sellers behave: buyers buy the dip and sellers sell the rally, thus, making candles with large wicks and small bodies.
Although the bias is currently negative, the fact is that unless the price breaks below $9,320, this leg is still a correction of the former bullish impulse. Thus, a possible scenario is for the price to meander around $10,000 for a while and then create a second bullish impulse.
XRP 4H seems to move inside a horizontal band between 0.25 and 0.266 with a cycle of about 40 candles.
Currently, the 4H price has moved to the lower side of the channel. The last candlestick is showing buyers at these levels. Therefore, there is a high likelihood of a bounce to the top of this area.
Litecoin
Litecoin is showing still strength. Although currently dragged by the Bitcoin it is holding the latest key support of $70. The price moving above the mean BBline and above its +1BBline, while the price is above its 50-period MA confirms the likelihood of more upside.
The above chart shows the current LTC supports and resistances.
Ethereum is moving sideways, still correcting a bit of its previous impulsive movement that started last September 7. Currently, the price is close to $180, but above the 50-period MA. We should watch the pierce of the $180 as a sign buyers are coming in, the most probable scenario given the technical outlook. A breach of $176 would mean more drops for this asset, though. The above 4H chart shows a broad perspective of supports and resistance levels, as a framework for trade analysis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.