Yesterday, cryptocurrencies were holding at the top of the range set by their last thrust. This early morning Bitcoin, after being rejected again from $8,700 it has retraced with strong volume to the support area we devised yesterday. XRP and Ethereum are also close to our targeted area. The 24H heat map shoes an almost generalized sell state on all assets, with the notable exception of ALGO (+9%).
The market capitalization dropped -2.65% to $226.15 billion, and the 24H traded volume descended to $32.5 billion, although it experienced an increase at the beginning of the selling spike. Bitcoin dominance is currently 66.4%.
Hot News
People's Bank of China continues hiring tech experts for the team managing its digital currency project. The institution is looking for experts in computing, microelectronics, and cryptography.
SimplyVital, a New England-based blockchain company, won a US National Science Foundation grant of $225,000 to develop an integration of its Nexus protocol with Graphene protocol. The company should look to find a way to reduce healthcare costs through the use of blockchain technology to access data. Source: cointelegraph.com.
Perth Miny, Australia's leading precious metals refinery, has partnered with blockchain company InfiniGold to create an ERC-20 token, which they claim is the first blockchain token to be backed by government-guaranteed gold reserves. The token is named the Perth Mint Gold Token (PMGT). Source: cryptonews.com.
Unicef became the first UN body to launch a cryptocurrency fund. The goal of this fund, titled UNICEF Cryptocurrency Fund, is to allow receiving, holding, and distribute donations made in Ethereum and Bitcoin. Source: newsbtc.com
Technical Analysis
Bitcoin
On the 4H chart, we see that Bitcoin has made a spike that attempted to break the $8,700 resistance, but instead, it created a selloff. That can be perceived because the drop happened with a large volume. The price closed at the target we set yesterday (8,390). The current candle kept descending, although it is bouncing off from the vicinity of $8,300.
This state is critical for the mid-term wellbeing of this currency.
The current technical outlook neutral. If the close of the current candlestick, which will take place three hours from the moment of this writing, move the price again to the upper side of the Bollinger band, the upward momentum remains there. To the downside, the next support level will be $8,200, which holds the 50-period MA, and also is the 50% retracement of that last movement that started from the $7,750 bottom.
Ethereum
Ethereum is mimicking the price action of Bitcoin closely. After moving in the top range of its bullish movement, it dropped on strong volume from the $196 resistance level and moved to touch our target level in one go. The current candle is bouncing off from this area, but it is still in development.
The volume of the sell candle is very large, which means a lot of stop-loss orders made by the buyers were caught in this movement. We need to observe how the current candle closes since we want to know if the selloff was made by the fear of the weak hands or is the beginning of another dump by smart traders.
If the current candlestick creates a large lower wick and the $196 level holds, we estimate that buyers would come to move the price up. On the short side, we see the price could find support at $180, which is currently in the vicinity of the 50-period MA.
Ripple
Ripple has been retracing since it made a second top in our light blue region near $0.285. The last candlestick made with higher volume has bounced in the vicinity of our target area, close to the crossover of the moving averages.
The technical indicators still show the price in a corrective descending action ( MACD and Bollinger Bands descending and the price moving below the -1SD line). The shadowed blue area it still acts as support as the 200 and 50 moving averages indicate this is a consensus price for investors. Still, to go long, we think the price needs a period of consolidation and evidence of MACD and Bollinger Bands moving upwards.
100% Anonymous Trading on EagleFX - Trade NOW!
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Grayscale has withdrawn its 19b-4 application for an Ethereum futures ETF. SEC Chair Gensler says several crypto assets are securities as he waives off ETH classification question. Ethereum could sustain horizontal movement in the coming weeks.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
98% of creditors receive at least 118% of allowed claims within sixty days of effectiveness, others get billions in compensation. Plan would resolve disputes with government and private stakeholders without costly and protracted litigation.
Solana FireDancer validator launches documentation website, SOL price holds 23% weekly gains
Solana FireDancer validator has debuted, meant to replicate Solana’s functionality but with higher performance. Built from the ground up for performance, FireDancer advertises speed, security, and independence.
Bitcoin price may see further upside, Standard Chartered says, citing looser regulation and US spot ETFs
Bitcoin could benefit from US fiscal dominance and Trump winning, Standard Chartered says, citing loser regulation and spot ETF approvals. Hong Kong issuers told WuBlockchain that the government prohibits sale of virtual asset-related products to mainland Chinese.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.