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Crypto Tech Analysis: Altcoins Woes Trigger Corrective Rally

Bitcoin gains driven bullish momentum lost steam as gap between Altcoin and Bitcoin grew wider triggering corrective rally.

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The cryptocurrency market has seen significant decline in market capitalization with both Bitcoin and altcoins suffering serious losses. However, the overall market capitalization of cryptocurrency assets still remains well above US$300 Billion. While it is a bit later than expected cryptocurrency market has entered corrective price activity and this was triggered owing to a difficult and problematic scenario.  The recent positive price run in cryptocurrency market was driven mainly by Bitcoin’s steep upward price movement. However, the influence from that alone lacked strength to push cryptocurrency market into a medium to long term sharp bullish price run. As the difference in price gap between Bitcoin the progenitor of crypto coins and major altcoins widened beyond a certain threshold, it caused positive influence from Bitcoin’s gains to fizzle out. This happened right around the time when Bitcoin was trying to gain stable foothold above 12k market resulting in sharp decline of both Bitcoin and other major altcoins.

Bitcoin: The progenitor of cryptocurrencies accounts for nearly 70% of entire cryptocurrency market’s overall market cap. While Bitcoin has managed to lose hold and decline below 12K mark it’s market capitalization is still at nearly US$ 207 Billion. The BTCUSD pair is currently trading at US$11587 down by 4.58% on the day but seems to have achieved stability near mid-11K mark. RSI indicator used to measure momentum of price action has declined below over bought zone in daily chart and is heading towards oversold region in minutes and one hour intra-day chart suggesting bears have upper hand in immediate future trading sessions. The price has declined below 9 and 50 SMA but remains stable above 100 SMA. Expected support and resistance are at 11350, 11170 and 11790, 11995 respectively.

Ethereum: The second largest cryptocurrency is terms of market capitalization is down by nearly 3% over the last 24 hours. Market capitalization of Ethereum is at US$24.3 Billion and ETHUSD pair is trading at $225.68 down by 2.81% on the day as of writing this article. Before corrective rally began, ETHUSD went as high as $238.89 – three week highs and has since declined heavily. But strong support to the downside has prevented pair from declining below $220 handle for now. RSI indicator used to measure momentum of price action has declined below over bought zone in both intra-day and daily charts and signal line is currently moving near neutral area – around 49 level across intra-day charts. However, 9, 50 and 100 SMA’s applied on intra-day charts show that corrective rally may come to an end soon as price is moving above 9 and 100 SMA’s but below 50 SMA in intra-day charts. Expected support and resistance for the pair are at 220, 217/4,211 and 230, 235 and 239 handles respectively.

Ripple: Ripple continues to hold the position of third largest cryptocurrency in terms of market cap, with overall valuation standing at $13.47 Billion USD. As of writing this article, Ripple has declined below 0.32 handle and XRPUSD is trading at 0.3110 down by 2.51% on the day. Unlike Bitcoin and Ethereum which when looked at last 7 days hold some level of its gains, XRP over the course of last 7 trading sessions is down by 1.60% as per data from investing.com website. RSI indicator which is used to measure price momentum is seeing signal line flat out slightly above oversold region across intra-day and daily charts. Meanwhile, the pair is seeing price move well below all three SMA’s – 9, 50 and 100 across all intra-day and daily charts suggesting high level of bearish influence prevalent in current and immediate future trading sessions. Expected support and resistance for the pair are at 0.3085, 0.3100 and 0.3125, 0.3165 respectively.

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