Bitcoin fights to hold $8K as Cryptocurrencies Retrace
In the last 24 hours, cryptocurrencies were on a moderate descending path, Bitcoin, Ethereum, and Bitcoin SV are dropping about 2%, while Ripple is mostly unchanged and Litecoin advances +1.35%. The market capitalization of the crypto sector descended to $217.2 (-2.22%) on a slightly ascending volume of $22.67 billion (+4.46%).
Fig 1 - Market Capitalization
Fig 2 - Heat Map of the Cryptocurrency Sector
The current dominance of the top three main coins is headed by Bitcoin, which descended slightly to 66.67%, followed by Ethereum((8.51%), and Ripple (4.79%).
Hot News
According to an article by cointelegraph.com, over 72,000 devices were infected in 2019 with a malware campaign to steal cryptocurrency. The research was performed by the cyber intelligence company Prevaillon. According to them, the malware botnet, MasterMana, is delivered as a Trojan via phishing emails.
PayPal is considering to leave the Libra project due to "regulatory scrutiny." Financial Times reported that PayPal did not attend the scheduled meeting Libra Association members had on Tuesday, October 3.
US House committee is asking Mark Zuckerberg to appear before the panel by January. In an article by amcrypto.com, it is revealed that the House of Representatives' Financial Services Committee has scheduled a meeting to hear the testimony of Facebook's Chief Operating Officer, Sheryl Sandberg, on October 29.
Apple will not create its own cryptocurrency, said CEO Tim Cook. "I am not comfortable with the idea that a private group creates a competing currency. A private company does not have to seek to gain power in this way, " said.
Technical Analysis
Bitcoin
The daily chart of Bitcoin shows it broke the lower line of the wedge pattern, at $8,200, which was a key support. Then the price bounced near the $8,000 level and is struggling to hold above the descending trendline, which marks the mid-term pennant structure BTC is drawing since the end of June.
The 4H chart shows the price is below the -1SD Bollinger line. It is also below the 50- period MA. But, we see also that it is bouncing when sellers bring it below $8,100. We see the $8,000 as the key support to be broken if the price is going to take the southern route. A close above $8,250 would carry it to test the $8,500 level again, although this is a less likely scenario.
Ethereun
Ethereum developed our second scenario yesterday, and the price went down to move near the lower trendline of its ascending channel. ETH is moving close to that line, which seems to be acting as support right now. Nonetheless, the price action is weak, with closes below the -1SD Bollinger line and MACD slightly negative. A plausible scenario is a descent to $165.
Ripple
Ripple is moving up right now, and its price is touching the $0.254 level, tt the top of the structure the price is forming. As we said yesterday, we would like a close above that level to confirm a new leg up. As of now, and taking into account that the current leg is reactive, we estimate the price will bounce off of this area and head south again.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
