The Crypto Sector in selloff mode searches a support zone

Most of the cryptocurrency sector accelerated the losses after breaking the neckline of support that was holding their prices. The selling pressure was in almost all digital assets. Bitcoin loses yet another three percent in the last 24H, whereas Bitcoin Cash (-8.4%) and Bitcoin SV (-9.74%) were leading the drops, along with Ethereum Classic (-9.13%), Litecoin (-6.8%), Stellar (-6.6%), Monero (-5.5%), Dash(-6.96%) and ZCash(-7.25%).

In the Ethereum token group, considering the most capitalized, LINK (-5.07%) is the worst performer along with ZRX(-4.85%) and BAT (-4.6%). XIN(+22.7%), CENNZ(+30.55%), and FST(+41.54%) were the most bullish.

The Market Capitalization of the sector dropped to $228.988 billion (-4.39%), and the traded volume in the last 24 hours increased by 20.9% to $35.23 billion. In contrast, Bitcoin dominance grew to 65.9% due to the fact of dropping much less than the altcoins.

 

Hot News

Bitcoin Cash (BCH) four biggest mining pools, controlling more than one-third of the BCH's hash rate, are preparing to implement a 12.5% mining rewards tax starting May. The fee will be sent to a Hong Kong-based firm. That firm will control the development of the BCH blockchain. According to them, " This plan aims to provide sufficient funds for BCH developers to accelerate the BCH development before the upcoming bull market in 2020–2021/22".

Several suspects of Bitcoin Hacking have been arrested in Japan charged with the subtraction of 78 million yen from CoinExchange crypto firm in October 2018. A man in Detroit sues his bank for refusing to accept his settlement check obtained lawfully from a discrimination lawsuit. According to dailyhodl.com, the bank clerks did not believe the checks were real and accused him of trying to deposit fake checks, calling the police.

 

Technical Analysis: Bitcoin

Bitcoin is creating a descending wedge and seems to be headed to a test of the $8,000 to $8,200 zone, which should act as a good support area. The price moves still below the -1SD Bollinger Band and its MACD decidedly bearish. These types of wedges are continuation patterns, so it will likely be resolved to the upside once BTC finds a good supply area in this zone.

Support	Pivot Point	Resistance
8,200	8,450	8,600
8,000		8,760
8,860		8,900

 

Ripple

Ripple has created a descending channel. The price seems headed to a support area between $0.209 and $0.216. The MACD is showing a bearish phase, which is confirmed by the price moving well below the -1SD line, and the Bollinger Bands widening. We estimate that this descending movement will find support in the shaded area. From where it might start a new leg up or, in the worst case, a bounce to the 0.225 level.

Support	Pivot Point	Resistance
0.2190	0.2250	0.2300
0.2100		0.2350
0.2000		0.2400

 

Ethereum

Ethereum has also created a pennant-like descending channel, and its price now is at a possible support zone, although it doesn't seem too keen to hold. The price might continue down to test the $155 level. The MACD shows a bearish phase, and the price is well below the -1SD line, while the Bollinger bands are expanding. If the $155 doesn't hold, the next stop would be $149. Also, it is possible, break of the $157.7 level and a sudden bounce to above $160, but we need to see a change in the technical indicators or a substantial volume to believe in that move.

Support	Pivot Point	Resistance
157.7	162	167.5
155		170
149		176

 

Litecoin

Litecoin descent has been very sharp. Its price now is close to a support zone between $49 and $51. The price seems to move in a descending channel, and since this area is in confluence with the price touching the lower line of the channel, the likelihood of a price bounce to the upper side of the channel at least is high.

Support	Pivot Point	Resistance
51.5	55	58.4
49		60
46		62.5

 

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