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Crypto Tech Analysis: Bears Run Amok Dragging Major Crypto’s Below Critical Support Level

The cryptocurrency market is on the path for bottomless decline as investor sentiment losses bearish edge amid lack of supportive fundamentals.

Brad Garlinghouse
Brad Garlinghouse, the CEO of Ripple
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The cryptocurrency market continues to see the price of Bitcoin and other major crypto coins decline as the trading session continues to progress into the week. The overall market capitalization of cryptocurrencies has dropped by more than US$20 billion over the course of the last two days. Cryptocurrency market sees its price action driven by broad-based investor sentiment more than influence from any other factor. Given lack of any major event or updates in recent past crypto market’s fundamentals are beginning to lean towards the dovish side with critical support levels lacking the strength required to terminated downside action and this is major reason top crypto’s are seeing a bottomless decline in recent past and immediate future trading session.

Bitcoin: As of writing this article the BTCUSD pair is trading at $9264 handle well below psychological market at $9500 which had capped further downside move so far this month. Since trading session began for the day Bitcoin has declined more than 12% and has currently lost most of the gains made over the course of the last one and half month. The next level of critical support is found near $9070 handle which if breached will lead the pair to enter a phase of bearish consolidation initially and range-bound price action. A rebound near current level will give bulls chance to retake monthly highs but the same seems unlikely now. Given price momentum so far, in immediate future, the path with least resistance is towards downside with strong psychological support near$6900 handle. Moving forward this week, BTC pair is likely to decline below $9000 handle but unlikely to breach below $8500 handle ahead of Friday.

Ethereum: Ethereum also suffered significant loss over the course of last two trading session and coin with the most loss incurred among top 10 coins in terms of market capitalization today with a decline of nearly 14% on the day. The ETHUSD pair is currently trading at $199 handle and has made multiple attempts to rescale $200 handle which has failed so far owing to strong demand found near $200 handle. The pair hit this week’s low at $193 handle yesterday and is likely to continue trading within $190 to $200 handle in near future. Similar to Bitcoin, the path least resistance moving forward is to the downside. However, given its repeated attempts to rescale $200 handle in recent past the pair can escape bear’s grip if it manages to climb up and hold fort above $200 handle while a decline below $190 handle will open up path for further declines, In immediate future, the pair is likely to be trapped in range-bound action between $190 to $200 price range.

Ripple: While Ripple also continues to decline in the global market, the decline for Ripple is considerably lower when compared to the other two major cryptocurrencies so far this week. The XRPUSD pair is trading at 0.297 down by 4% on the day. Ripple’s relatively low decline could be due to positive influence surrounding the pair stemming from Ripple CEO Brag Garlinghouse’s retaliatory comments against statements released by Trump and Mnuchin earlier this week. However, risk aversion sentiment in cryptocurrency market stemming from updates relating to facebook’s cryptocurrency project Libra acts as strong resistance capping further recovery action in Ripple. The path with least resistance for ripple moving forward this week is to the downside. The pair is expected to trade range bound trapped within $0.25 to $0.30 price range as the pair attempts to regain bullish momentum and reverse loss suffered earlier this week.

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