Cryptocurrency market calms down; volatility may not be over yet, Weiss Crypto Ratings warns
|- The cryptocurrency market settled down after the rough start of the week.
- Weiss Crypto Ratings says the market may stay volatile.
The cryptocurrency market has been a wild place recently. The total capitalization of all digital assets in circulation plummeted to $176 billion, while daily trading volumes jumped to $86 billion from $60 on average recently.
While Bitcoin and all major altcoins calmed down on Wednesday, the situation is still nervous and fragile as the sell-off may resume at any time. BTC/USD tested area below $6,600 during early Asian hours before recovering to $6,630 by press time. ETH/USD and XRP/USD are down nearly 7% on a day-to-day basis to trade at $122.30 and $0.1830, respectively. Despite the overall downside trend, some significant altcoins from top-20, like Litecoin, NEO, Monero, attempts to recover from the recent lows. The above-said coins gain about 1.5% since the beginning of the day. Though, the upside momentum is still limited until Bitcoin's recovery gains traction,
Weiss Crypto Ratings sees the light at the end of the tunnel
Meanwhile, the experts from Weiss Crypto Ratings warns that the market remains volatile and may change the direction at any time, though a large-scale sell-off seems unlikely hat this stage:
Despite recent ups and downs, most #crypto assets are still holding above key support levels. Whether they can continue to hold remains to be seen. But for now, the most reasonable expectation is more sideways action.
The experts note that major assets are still above long-term pivotal levels, which means there is room for further decline, which will be followed by a period of consolidation. All-in-all, the agency retains an optimistic stance about the industry though they note that the recovery may not be as dramatic as on previous occasions.
The direction of crypto markets can flip flop frequently — from bullish to neutral, neutral to bearish and then back to bullish again. Sometimes the change is blatantly obvious, as in December 2017 when Bitcoin crashed … and again in December 2018, when it hit rock bottom. But on other occasions, the shift is more gradual and subtle, as it has been recently.
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