Tanya Abrosimova
Independent Analyst
- BTC/USD clinches to $6,000, but the bias is bearish.
- ETH/USD crashes below $300 as ICO projects dump the coins.
- XRP/USD moves in lockstep with the rest of the coins.
Bitcoin is dangerously close to $6,000 handle, trading with clear downside bias amid bearish sentiments that gripped the cryptocurrency markets after a short recovery. The total capitalization of digital assets dipped below $200B for the first time since November 2017, adding black colors to the technical picture. Altcoins got into a tailspin, while Bitcoin dominance reached 53.9%, which is the highest level since December 19, 2017.
BTC/USD 1D
BTCUSD is changing hands at $6,037, down 6.5% on a daily basis and 3.5% since the beginning of Tuesday. The digital coin No. 1 dropped below $6,000 levels during early Asian hours for the first time since the end of June. While the coin managed to claw back some ground, the short-term bias remains negative, while the recovery is likely to be limited due to numerous resistance levels clustered above the current price.
Immediately above the current price, the resistance is created by a confluence of technical indicators, which includes:
Bollinger Band 15 min - Middle, Bollinger Band 4hour - Lower, last month low and last week low, SMA5 - 1hour, SMA10 - 15 min, SMA5 - 15 min, 15 min low, followed by the 4hour high, SMA50 - 15 min and Pivot Point one-day Support 1.
This area is likely to stop the recovery attempts, though if the bulls manage to take the price clearly above $6,100 handle, the upside may be extended towards $6,300. This resistance area is created by 38.2% Fibonacci retracement daily, 23.6% Fibonacci retracement weekly and SMA5 - daily.
Bollinger Band 1hour - Upper and 38.2% Fibonacci retracement weekly guard $6,450 area.
The downside is considered to be the path of least resistance as there are few technical levels worth noting. Once below $6,000, the support is seen around $5,750 with Bollinger Band one day - Lower and Pivot Point one-week Support 1.
The ultimate support is created by Pivot Point one-weekly Support 2 at $5,300.
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ETH/USD 1D
ETH/USD is a catastrophe as the coin hasn't been this low since September 2017. The second largest digital asset is trading at $266, down 17% on a daily basis and over 6% since the beginning of Tuesday. A sustainable movement below $300 handle, increased the downside pressure and pushed the price into a tailspin. ICO projects disposing of their coins may be partially responsible for Ethereum's crash.
Looking technically, ETH/USD has entered uncharted territory with next to nothing in terms of support levels all the way down to $255 (Pivot Point one-day Support 2) and $250 (Bollinger Band one day - Lower.
Immediately above the current price, the resistance area is created by the confluence of technical indicators, which include 1hour high, Pivot Point one-day Support 1 and Pivot Point one-week Support 2.
The next hurdle comes at $280 with one day low and Bollinger Band 1hour - Middle, while the strongest resistance is seen on approach to $300 (38.2% Fibonacci retracement daily and Pivot Point one-month Support 3.
XRP/USD 1D
XRP is changing hands at $0.2624, after crashing to $0.2464 during early Asian hours. The third largest coin has lost nearly 14% of its value on a daily basis amid global cryptocurrency sell-off and touched the lowest level since November 2017. A sustainable movement below $0.3000 handle spoiled the technical picture and added bearish sentiments to the market.
A confluence of Pivot Point one-day Support 1, SMA5 - 15 min and 15 min low is located right above the current price, Which means that the recovery attempts may be limited.
Much stronger hurdle comes at $0.2750. This resistance is created by Bollinger Band 1hour - Middle, Bollinger Band one day - Lower, Pivot Point one-week Support 1 and SMA5 - 4hour.
Once this area is cleared, the upside may be extended towards $0.2800 (SMA100 - 15 min, and 23.6% Fibonacci retracement daily) and to $0.2850 (38.2% Fibonacci retracement daily).
On the downside, the first area of support comes below $0.2550 with 4hour low and Bollinger Band 15 min - Lower. It is followed by Pivot Point one-day Support 2 and Bollinger Band 1hour - Lower at $0.2450. The final support is created by Pivot Point one-week Support 2 on approach to $0.2300.
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