Cryptocurrency Market Update: Top 3 coins Bitcoin, Ethereum and Ripple send red signals
|- China could soon face out the cash systems with the launch of the sovereign digital currency.
- Tom Lee believes the recent rally is evidence of better dynamics for cryptos in 2020.
- Bitcoin struggles to hold above $8,600 while Ethereum barely sits above the $160 key support.
The crypto market has been extremely eventful this week. The massive recovery saw bulls storm the market in large numbers. Some cryptocurrencies such as Bitcoin SV, Dash and Bitcoin Cash were like Usain Bolt on steroids. Generally, the majority of the digital assets recorded incredible gains are now trading at levels higher than those at the beginning of the year.
China nears the launch of the PBOC-backed digital currency
China has been researching, developing and testing the soon to launch sovereign digital currency for the last five years. Officials from the People’s Bank of China reported that the process is almost done and the launch is nearing. The release of the digital currency will see China attempt to transform from a cash system to a digital monetary system over time. However, the system will not be used to disrupt the existing system but face it out with time.
Read more: China’s PBOC completes the testing of its digital currency: The launch is nigh
Bitcoin price update
Bitcoin is trading 1.64% lower on Thursday during the European session. The crypto engaged reverse gears after the throttle reached its limit short of $9,000. The correction from the recent high around $8,900 has seen the price struggle to hold above $8,600. Besides, BTC has traded an intraday low of $8,580. Further losses are possible based on the high volatility and strong bearish trend.
Bitcoin set for a bigger rally
According to Tom Lee, the founder of Fundstrat, Bitcoin rally in January has brought the digital asset back to the active trading phase. He says that better dynamics in 2020 will set the ball rolling north not just for Bitcoin but for cryptos in general.
The improved performance of crypto in 2020 is evidence that a better and healthier dynamic is underway this year. In our view, three positive convergences are acting as tailwinds for #bitcoin and other #crypto in 2020 https://t.co/CcmLtr7M8i
— Thomas Lee (@fundstrat) January 15, 2020
Ethereum price update
Ethereum is also dealing with increased selling activity following the bullish wave on Tuesday. The crypto touched $170 to the upside but lost momentum, resulting in the ongoing retreat. Ether is down 2.73% on the day while the trend remains bearish and the volatility higher. If the support at $160 fails to hold, movement targeting $150 is likely.
Ripple price update
On the other hand, the third-largest crypto is likely to be overwhelmed by the growing selling activity. The sell-off commenced after the recent surge stopped at $0.2444. XRP has lost 2.82% of its value on Thursday and could break the support at $0.23 if a reversal above $0.24 fails in the near term.
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