Post hitting strong resistance to the upside towards end of last week, the cryptocurrency market saw both Bitcoin and major Altcoins bleed profusely during the weekend. The overall market capitalization of the cryptocurrency market has dropped to US$280 Billion. The weekend saw the price of top cryptocurrencies breach multiple key support levels and head for monthly lows but the decline was capped slightly above monthly lows on strong support to the downside. While the price action in the cryptocurrency market is currently dominated by bears, bulls have finally begun making some recovery headway in European market hours.
Bitcoin: The BTCUSD pair is currently trading at $10300 mark having managed to recover from declines below $9900 handle and has managed to regain strong foothold above $10100 mark. However, the price action remained well below 9, 50 & 100 SMA’s in 5-hour intra-day chart. The pair must now continue the ongoing upward momentum and rescale resistance near $10600/650 price levels for continued upward price action. A decline below $10100 mark will re-open the path back to monthly lows. The above-mentioned price levels will continue to provide a short term price limitation within which price action is likely to remain range-bound in the short term. After breaching $10600/650 handle, BTC bulls need to scale strong resistance near $10800, $11110 & $11515 for further upward movement failing which the market will see Bitcoin enter another phase on medium-term range bound zig-zag price move similar to earlier this month trapped with familiar price levels.
Ethereum: The ETH/USD pair also suffered sharp declines similar to Bitcoin. The pair came very close to testing $200 handle a decline below which could have caused a serious price meltdown. In a sharp downward price spike yesterday, the pair declined as low as $203 handle but moved back up above $210 handle shortly. The pair has since recovered considerably and has managed to establish a strong foothold above $220 handle and is currently trading at $225 handle. The price action is currently below 9, 50 & 100 SMA’s in both daily and 5-hour intra-day charts. To the upside, in immediate future, the pair faces resistance near $232 to $242 handle and support at $220 & $210 handles. But the pair would still be susceptible for sharp bearish meltdown as long as pair is below $265 handle which needs to be breached for ETH to resume solid and stable upward price momentum.
Ripple: Unlike Bitcoin and Ethereum, Ripple truly declined to hit new monthly lows over the weekend. The XRP/USD pair continued its decline from the weekend into early Asian market hours and hit new monthly lows at 0.2947 but has managed to recover a significant part of today’s declines in rebound price action during European market hours. The pair has now climbed back above 0.31 handle gaining strong support to the downside around 0.30 handle. The current market capitalization of ripple is around US$13 Billion as per data from coinmarketcap website. When looking from a technical perspective, the pair is still well within bear’s territory as both 5-hour and daily chart see the price move well below 9, 50 & 100 SMA’s. While XRP has attained stability above $0.31 handle it needs to scale resistance above $0.33 handle to gain to prevent the chance of yet another bearish meltdown in the near future. A move above $0.36 handle will give bulls the reign over price momentum while a move above$0.33 but below $0.36 will result in price action entering a zig-zag loop.
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