Cryptocurrency Market Update: Bitcoin devastatingly slides under $7,000, Ethereum and Ripple bleed

The carnage in the cryptocurrency market continues even as we enter the third week of December. The almost certain end-year rally appears to sleep through the bulls' fingers unapologetically. It is apparent that cryptocurrencies will close the year at unexpected lower levels. However, the market is relatively better compared to the downtrend experienced in 2018.

It is clear that the market is struggling to stay afloat. Moreover, after missing the pre-holiday rally, the situation could get worse as traders hibernate for the festivities. Besides, a new report by Chainalysis suggests that it is about to get even darker for the leading digital asset, Bitcoin.

Bitcoin market update

Bitcoin eventually broke the crucial support at $7,000. The bearish momentum extended the leg that has been bleeding the cryptoasset since the drop in November from highs above $8,000 to lows close to $6,530.

The recent losses touched $6,828 on the downside but Bitcoin has since recovered to $6,880 (current market value). FXStreet’s cryptocurrencies live rates table shows the trend as strongly bearish amid low volatility levels.

The four-hour chart shows a symmetrical triangle breakdown is still catalyzing the downside momentum. The technical picture appears to get worse by the session. For instance, the RSI is buried in the oversold and showing no signs of recovery. The gap between the 50 SMA on the 4-hour chart and the 100 SMA is also widening and signaling a growing bearish grip. If the picture fails to change, Bitcoin could slide to test $6,000.

BTC/USD 1-hour chart

Ethereum market update

Ethereum reacted in tandem with the falling Bitcoin price. The support held at $142 and $140 did very little to stop the selling pressure. For the second time in less than two months, $130 support was tested. A subtle recovery pulled ETH above $132 and is teetering at $132.50. The expected reversal will encounter resistance at $140, the trendline resistance as well as the moving averages. Ethereum bulls limited choices but reclaiming $140 support will go a long way in nurturing the growth towards $200.

ETH/USD 1-hour chart

Ripple market update

Ripple, on the other hand, pushed the losses discussed yesterday a notch lower, dropping beneath the short-term support at $0.2050. The bear momentum aimed at $0.2000 but formed a low at $0.2033. Recovery momentum is still at bay because XRP is trading at $0.2035 amid a growing bearish cloud.

XRP/USD 1-hour chart