The market remains stable throughout the week, witnessing neutral sentiment across all the legacy coins. The market cap for the last few weeks has been ranging between the $130-$140 billion levels. Also, the average 24-hour volume has been constant around the $30 billion level.
I think, for the market to break above, it needs a strong momentum which at present is lacking and will be very difficult to gain at the moment. With fears of a global recession strengthening after the US bond yield curve reversed for the first time since 2007, the crypto market could witness traction from here and see momentum building up. But, at the moment it is very difficult to say, it will happen or not, because there is no established correlation between the two markets.
Here is the technical analysis of the top five cryptocurrencies:
Bitcoin continues to flirt with the $4,000 level, as it has been trading sideways for the most part of the week. In the hourly chart, the 50 Day EMA is offering stiff resistance and the market is struggling to keep above. Also, the 50 Day EMA is trending downwards, which is a bit negative. Underneath, $3,950 level should offer a bit of support and if it breaks below, then it can reach towards the $3,800 level.
Ethereum continued with its consolidative move as it mostly hovered around the $140 level through the last week. The 50 Day EMA is offering strong support to the market and a break could send it towards the $120 level, which has been supportive in the past as well. If we check with the Fibonacci retracement scale, then we are witnessing strong support at the 50 per cent scale or at the $133 level.
A breakout above 38.2 per cent or $141 level would be very positive and could reach towards the $150 level.
Ripple broke down during the past week, losing almost 8 per cent of its value. It has breached a strong support level at $0.31820 level and is now likely to reach towards the $0.30389 level. I think XRP/USD pair should continue to consolidate between the $0.31820- $0.30389 level and if it breaches the bottom of the consolidation, then its likely to reach down towards the $0.2890 level.
Litecoin managed to hold on the gains and was mostly sideways throughout the last week. The $57 level underneath is strong support for the market and is expected to attract a lot of attention. A break above the $65 level would help the market to reach towards the $75 level next. Alternatively, if it breaks below the $57 level, then it could reach down towards the $50 level next.
Bitcoin Cash has given out a bullish breakout as it can be seen in the daily chart. The 20 Day EMA slope has broken above the 50 Day EMA, which is considered to be a bullish technical breakout. The 100 Day EMA above is offering resistance to the market and will be difficult to break out. The $140 level underneath is the strong support for the market, which is also the floor of the market.
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