Bitcoin and Cryptocurrencies on a Second Retracing Day

The selling pressure is keeping cryptocurrencies down for its second consecutive session. Bitcoin (-1.85%) loses its $9800 level, and Ethereum below the $220 figure. The most bearish are NEO (+5.16%), Dogecoin(-6.2%) and Lisk(-18.2%). Against the main flow move Bitcoin SV (+2.55%) ALGO (+7.8%) and, notably, Waves(+18%). The selling pressure is also present in the Ethereum token section, MOF(-10.9%), and AION(-17.09%) among the worst performers. But there are excellent movers as well, among which are ENJ(+5.44%), BAT(+8.35%), SNX (+10.75%), and DX (+13.6%).

The crypto sector capitalization descended to $280.419 billion, 3.23 percent less than 24 hours before. The traded volume in the last 24 hours was $49.94 billion (+7.61%), and the dominance of Bitcoin fell to 63.47%.

Hot News

BTSE launched a "real-time" altcoin index: BBAX. BBAX aims to be an institutional-grade index and claimed the first to track a basket of altcoins across several exchanges. BBAX follows ETH, XRP, LTC, and EOS based in the order book data collected from eight exchanges: Binance, Bitfinex, Bitstamp, Bittrex, Gemini, Coinbase-Pro, Kraken, and BTSE.

The US-based Crypto custodian firm BitGo has expanded its market to Europe, by opening to offices in Switzerland and Germany. The Swiss-based BitGoGmBH is regulated by the Swiss FINMA, and in the case of the German-based firm, BitGo will apply for a license in that country.

The Italian securities regulator has shut down eight crypto-trading and foreign exchange websites, accused of violating the Mifid2 and the Consolidated Law2 on Finance, as they were providing illegal trading products.

Technical Analysis - Bitcoin

Bitcoin continues weak for its second day; its price is near breaking its $9,730 support. The price has shifted to the lower side of its Bollinger Bands and moves below its -1SD line, while the MACD continues in its bearish phase.  If the $9,730 level does not hold, the next support will be provided by its 50-period SMA at $9,660. The price above its 50-period SMA, which is pointing upwards, shows that the main trend continues to be bullish. Also, a break above $9,870 will signal a possible continuation of the upward trend.

Ripple

Ripple continued descending following its -1SD Bollinger line. The price has crossed its 50-period SMA, which is not good for the long-term bullish trend; also, the MACD continues pointing south, signaling the bearish leg XRP is experiencing.

There is still no hint to a bullish reversal, but as long as $0.266 holds, we could see this movement as a sideways rectangular formation, which is mostly a continuation figure.

Ethereum

Ethereum is paying its strong bullishness of the past week by dropping towards the ascending channel. The price is now below its -1SD Bollinger line, which shows its current selling bias, and is near the upper line of that ascending channel. The $220 level has been provisionally breached, and if $217 does not hold, it is likely to continue towards its next support at $212, which also confluence with its 50-period SMA. Of course, a recovery above the $224 level would be perfect for the buyers.

Litecoin

 Litecoin has descended to $73, erasing its last upward segment completely. The price now is moving in the confluence of the $73 support and its 50-period SMA. We see the MACD histogram showing some signs of an end of the retracement, but the overall sector is still short-term bearish, so we assign more value to the fact that LTC price moves below its -1SD Bollinger line. If $73 does not hold, the next level to visit will be $71.3.  A move above $75.25 would signal its next leg up.

---

Try Secure Leveraged Trading with EagleFX!