The Bear Sentiment Continues Dragging the Crypto Sector

This weekend, cryptocurrencies were creating a bottoming area, in a sideways movement that yesterday evening was trying to be resolved unsuccessfully to the upside, as the FED announced its interest rate slash. But, early morning, the crypto sector is moving to the downside, with Bitcoin(-7.59%) trying to hold its$·4.800 level, Ethereum (-11.6%) dropping to the $112 area, and Ripple(-7.14%) falling below $0.15. The losses among the top coins are led by Tezos(-18.32%) and Binance Coin (-10.66%). Among the Ethereum-based tokens, Link(-18.7%), BAT(-11.87%), and MKR(-9.48%) are the worst performers of the top capitalized tokens.

The market capitalization of the sector continued dropping and currently is $141.71 billion (-4.31%) with a traded volume of $41.863 in the last 24 hours. The dominance of Bitcoin continues moving up and currently is 64.4 percent.

 

Hot News

In an emergency decision announced on Sunday, the US Federal Reserve cut interest rates to zero and buy $700 billion in treasuries, restarting QE. The US index futures fell sharply and are currently -4.5 percent below its previous close, as gold and silver move up.Some analysts say that the market's adverse reaction came because, after this bold move, the FED has been left without weapons. "...if this doesn't work, what will?"  (Source: marketwatch.com).

Banks struggle to take cash out. Midtown Manhattan Bank of America branch ran out of $100 bills as customers were requesting to take tens of thousands of dollars, according to the New York Times. The situation is similar in the more affluent NY areas. The problem was limited to large bills. Another employee of the JPMorgan Chase branch said that there had been a constant stream of customers retrieving cash over the past two days.

 

Technical Analysis - Bitcoin

Bitcoin Continued its descents following the US Stock index futures and Asian financial market heavy drops. BTC is now struggling near $4800, a region sitting very near to the bullish guideline, after breaking the $5000 level and the triangular formation to the downside. A breakdown below the $4,800 line would drive BTC to near $4000, and also the breaking of its long-term bullish trendline.  On the chart, we see the price already touching the -3SD Bollinger line; thus, we can expect another expansion of the volatility. Sellers must watch the $4800 line carefully, as it may bounce sharply up from there is the financial markets stabilize.

Support	Pivot Point	Resistance
4,800	5,965	6,000
4,000		6,650
3,521		7,250

 

Ethereum

Ethereum followed the Bitcoin and overall market direction and has broken to the downside of the triangular formation and is currently struggling to hold the $108 level. We see it on the chart touching its -3SD Bollinger line, which shows the bearish momentum is strong.

The MACD is also creating a bearish crossover. Thus, more downsides can be expected.

Support	Pivot Point	Resistance
108.00	123.00	140.00
100.00		158.00
87.00		178.00

 

Ripple

We can see that Ripple has been moving in a descending channel for a while. The price has broken this morning the triangular formation, as was the case of the BTC and ETH. Now it is approaching the $0.13 level, as the price touched the -3SD Bollinger line, which also shows an expansion of the volatility. The downtrend is evident, as it is happening with most of the assets.

Support	Pivot Point	Resistance
0.1300	0.1500	0.1700
0.1150		0.1860
0.1000		0.2000

 

---

 

Try Secure Leveraged Trading with EagleFX!