Cryptocurrency market update: Major cryptos turn red as bears dominate

Major cryptocurrencies lost their traction on Saturday after a new selling wave hit the market. Although the lack of an obvious catalyst confused market participants, the broad-based selloff points out to a shift in the sentiment surrounding cryptocurrencies. Reports of the Internal Revenue Services sending out letters to more than 10,000 cryptocurrency holders in the US for failing to report income on crypto investments seem to be hurting the sentiment as well. With today's drop, the total market cap of all cryptocurrencies fell to $263 billion from $277 billion.

Top-3 coins price overview

After spending the first half of the day moving sideways a little above the $10000 mark, Bitcoin (BTC/USD) lost more than $600 in a matter of minutes and touched its lowest level in ten days at $9410. As of writing, the pair was down 3.8% on the day at $9475. The next critical support for Bitcoin aligns at $9000 (psychological level/Jul. 17 low). On the flip side, the pair could push higher if it makes a daily close above $10000. 

Ethereum (ETH/USD) was last seen trading at $206, losing more than 6% on a daily basis and remaining on track to close the third straight week in the negative territory. $200 (psychological level) and $190 (Jul. 16 low) align as next technical supports for the ETH/USD pair. Resistance could be seen at $225 (daily high) and $240 (20-DMA). 

Ripple (XRP/USD) erased all of Friday's gains and is now down a little more than 5% on Saturday, trading at $0.3065. The fact that the pair failed to break above the 20-DMA at $0.3285 yesterday suggests that buyers are struggling to take control of the pair's price action. With a break below $0.3000, the pair could target $0.2825 (Jul. 16 low) on the downside. On the upside, $0.3285 (daily high/20-DMA) is the initial resistance ahead of $0.3400 (Jul. 20 high).