Cryptocurrencies Bouncing after the Selloff

All major cryptocurrencies fell hard yesterday with increased selling pressure.  Bitcoin(-3.76%)  dropped  $677, breaking its $9,300 level down to $8655. Ethereum (+5.62%), EOS (-7.16%), Litecoin (-10.14%), and Ethereum Classic (-10.03%) dropped even harder. Worth noting is that Tezos(+4.47%) managed to hold quite well in an extremely bearish day.

Ethereum-based tokens were mixed, with Link (+7.42%), HEDG(+7.17%), and AION (+18.3%) with healthy moves, whereas MKR(-4.81%), CRO(-7.37%), REP (-6.12%), and others were being hit by sales.

The market capitalization dropped to $249.854 billion, a reduction of 6.72 percent. The traded volume in the last 24 hours was $76.482 billion, an increase of 42 percent, while the Bitcoin dominance stays virtually unchanged at 64 percent.

Hot News

The U.S. Securities and Exchange Commission rejected the proposal for a Bitcoin ETF proposed by Whishire Phoenix, stating that Wilshire had not proved that the Bitcoin market is resistant to manipulation. SEC Commissioner Hester M. Peirce, Published a dissenting statement in which she stated that "the commission applies a unique, heightened Standard under Exchange Act Section 6(b) to Rule Filings Related to Digital Assets.". She explains that this rule "requires the Commission to look to the rules of the exchange seeking to list the product, not the attributed of the assets or markets underlying the product to be traded."

Source: sec.gov

Technical Analysis - Bitcoin

Bitcoin price has reached extreme oversold levels, as evidenced by the last candles close to touching the -3SD Bollinger line (yellow). The price is provisionally above the $8,800 support level, and the last few hours, it has created a bounce, as is doing the rest of the sector. The probable path is to look for the Bollinger mean. Currently, we do not perceive that the buyers have stepped in. If you look for a chart showing BTC_longs and BTC_Shorts, you'll notice that this movement has been made by the shorts being closed rather than new long positions.

The likely continuation of the past action is more downside, with $8,300 being the possible target. Depending on what happens in the next few hours, the bounce may go up to $8,990, but the buyer's weakness is evident.

Ethereum

Ethereum dropped yesterday to below $220, before bouncing off. The level of $216, which corresponds to the lows of the consolidation made on Feb 10, served as support for the price. Now it has created an engulfing figure that may drive it to look to test the $245 level. The good news is that with the last upward move, ETH is above its 200-period SMA, preserving the upward trend temporarily. The price is moving from oversold levels, and we should consider this move a bounce. The short-term bias is still to the downside, as the price moves below the -1SD Bollinger line.

Ripple

Ripple has dropped below $0.23 in a movement that erased all the gains made in February. The price has bounced off after hitting the $0.223 level and now has recovered the $0.236 line. The bounce may reach $0.246 as its first target, but it will find resistance there and to the crossing of the Bollinger mean line. The current bias is still negative. We need to see its price on the upper side of the Bollinger bands and the bands turning upwards to consider a trend change.

Litecoin

Litecoin dropped very hard yesterday, erasing all the gains made in February. LTC bounced off of the $58.4 level and now is back above $62, but the bearish momentum is very strong, as the price was mostly guided by the -3SD Bollinger line, as we see on the chart.  The likely target for this rebound is $64, as this is the current pivot.

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