Home Analysis Alt Coins Crypto Tech Analysis: Major Cryptocurrencies Finally Buckle Under Pressure

Crypto Tech Analysis: Major Cryptocurrencies Finally Buckle Under Pressure

Market is bears territory on profit booking activity ahead of Bakkt's debut.

Share with your friends

After a brief period of intense fighting between bulls and bears which had resulted in consolidative price action for some time now, bears have managed to gain the upper hand. A serious lack of positive fundamental support and headlines which could provide market bulls with a trigger for breakout rally, price momentum finally succumbed to pull from crypto bears. However, there is still a last line of defense preventing price from declining similar to early 2018’s steep fall. For now, the breakout in favor of bears was influenced by increase in profit booking activity. As market remained lull, traders decided to book some more profits before Bakkt begins its operations as traders believe Bakkt’s debut will provide market with sharp increase in fund flow and serve as trigger for bulls to regain positive momentum aimed at reclaiming yearly highs. The overall market cap of cryptocurrency market as of writing this article is at US$250 Billion down by US$17 Billion since last Wednesday.

Ad

Bitcoin: The progenitor of cryptocurrency is trading positive today having recovered slightly from monthly lows hit in previous session. The BTCUSD pair yesterday hit a new 30 days low at $9360.40 post which it has recovered its hold above $9500 handle and holds steady near mid 9K range. As of writing this article, the BTCUSD pair is trading at $9570 up by 1.50% on the day with a market cap of US$170.27 Billion down by US$11.4 Billion since Wednesday. When looking from technical perspective, the price action suggests that Bitcoin is currently consolidating its loss having gained stability at current price level earlier in the day. Bitcoin now needs a catalyst to push the pair back towards scaling critical resistance at $10100 handle which had been capping declines so far until its recent bearish decline. For now, Bitcoin faces strong hurdles on both sides and hence the current stance can be described as more of price scaling to bottom part of long term price range limitations well within familiar price levels. Expected support and resistance for the pair are at 9700, 10000, 10100 and 9350, 9100, 8600 handles respectively.

Ethereum: The second most valued cryptocurrency in terms of market cap – Ethereum has finally moved out of comfort zone. Ethereum now faces multiple key hurdles on its path to scale $200 handle before aiming to reach 2019 highs. The ETHUSD pair has declined from $185 handle all the way to $164 handle but has since managed to stabilize above $165 handle ahead of the weekend. When compared to Bitcoin which is still in lower end of familiar price levels, Ethereum has strayed a bit too far which now necessitates harsher struggle on its path to reach its short term goal. The ETHUSD pair is trading at $169.69 handle down by 0.13% on the day with a market cap of US$18.12 Billion down by US$1.88 billion since last Wednesday. When looking from technical perspective, ETHUSD is now highly susceptible to further declines all the way towards $150 handle in immediate future if ETH bulls fail to contain influence from market bears. Expected support and resistance for the pair are at 164, 160, 155 and 170, 175, 182 handles respectively.

Ripple: Ripple, the second most valued altcoins in terms of market capital is currently struggling deep inside bears’ territory. Unlike Bitcoin and Ethereum which have managed to find a bottom and consolidate its losses while attempting for rebound, Ripple is still in free fall and seems susceptible for further decline. The XRPUSD pair fell as low as 0.2481 in trading session yesterday post which the pair has moved back above 0.25 handle but keeps oscillating above and below mid 0.25 handle. The XRPUSD pair is currently trading at 0.2561 handle up by 1.29% on the day with a market cap of US$10.93 Billion down by US$550 Million since Wednesday. But when looking from technical perspective, the pair’s failure to hold steady above 0.25 handle is a worrisome issue as it has already declined below key support levels and is oscillating near 2019 lows. A failure to stabilize above mid-0.25 handle could result in XRPUSD pair failing to rebound back to this week’s highs in case of positive trigger during the weekend. This could result in further range bound action near 2019 lows resulting in pair entering a long term bearish consolidative move. Expected support and resistance for the pair are at 0.2550, 0.2520, 0.2460 and 0.2600, 0.2623, 0.2650 handles respectively.

Please feel free to share your thoughts with us in the comments below.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here