The cryptocurrency market last weekend saw sharp declines on headlines driven momentum. Headlines hit the market stating that the US Internal Revenue Service (IRS) has started sending out letters to more than 10,000 investors who have invested in cryptocurrency penalizing them for failure to properly report their income. This caused a global meltdown on Saturday which resulted in cryptocurrency market losing over $15 Billion USD in total market capitalization. But bears still lacked enough strength to create a market-wide downward decline as investor sentiment for major crypto coins keep them well supported near psychological support levels to the downside. This resulted in bears exhausting themselves over the weekend and major digital coins resuming rebound action as the trading session began for the week. The overall market capitalization of the cryptocurrency market as of writing this article is at $266 Billion USD.
Bitcoin: The progenitor of cryptocurrency has declined below $10K handle yet again on the news-driven weekend decline which took quite a large chunk of market volume. However, bears have failed to turn it into breakout opportunity resulting in Bitcoin consolidating its hold to the downside while preparing for sharp rebound activity aiming to rescale 10K handle. As of writing this article, BTCUSD pair is trading at 9490 up by 0.29% on the day with a market capitalization of US$171.47 Billion. BTCUSD now as to scale resistance above $9870 handle to aim for 10K mark while the downside is protected by strong support at $9295 and $9100 handles respectively. The bias in immediate and near future trading session favors BTC bulls which suggest that BTCUSD will move back above $10K before mid-week if the pair scales resistance at $9870 handle by end of today’s trading session.
Ethereum: Ethereum, the second-largest cryptocurrency albeit facing sharp declines over the weekend has managed to rebound and regain hold well near Friday’s resistance levels. The market capitalization of Ethereum is currently at $22.70 Billion USD and ETHUSD pair is trading at $209.81 handle. The RSI indicator which is used to identify price momentum is currently seeing the signal line at 44 with an upward incline well near neutral levels. The price in 5 hr intra-day chart is above 9 SMA but well below 50 & 100 SMA’s. The pair has strong resistance at $218.14 handle which is confluence level for 9 & 50 SMA’s and has strong support near $202 and $199 handles respectively. The pair will gain unrestrained positive momentum once it manages to move above $218 handle and gains solid foothold around $220 handle.
Ripple: Ripple the third-largest cryptocurrency in terms of market capitalization is yet to recover from weekend declines despite rebound activity gaining momentum. The current market capitalization of Ripple is at $13.31 Billion USD and XRPUSD pair is trading at $0.3093 up by 0.42% on the day. The price of the pair has been oscillating between 0.3050 and 0.3145 across Asian and European market hours today. The RSI indicator which is used to identify price momentum is currently seeing the signal line at 43 but seems to be normalizing near said level which hints at neutral bias/momentum in immediate and near future trading sessions. The 5-hour intra-day chart is seeing price action move well below all three key SMA levels – 9, 50 and 100 which is also a sign that the pair is not out of the woods yet. The pair needs to scale resistance at 0.3150 and 0.3190 handle with strong foothold over 0.3150 mark to aim for breaching 0.32 handle. The support to the downside is at 0.3050 and 0.3010 handles respectively.
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