Cryptocurrency market this week saw top cryptocurrencies attempt to breach key resistance levels to the upside which ended in failure. This event happened just as trading session began for the week and resulted in cryptocurrency market seeing sharp declines. While the declines seemed to have come to an end initially, it turned out to be nothing more than a temporary pause as bears gained an upper hand and led to a breakout resulting in all cryptocurrencies suffering considerably loss in terms of both market cap and trading volume activity. The overall market capitalization of cryptocurrency is currently at US$263 Billion down by more than US$ 5 Billion since Monday. With no major events scheduled anytime soon in cryptocurrency market and a lack of strong support which could put an end or temporary stop gap measure to prevent further declines, top cryptocurrencies are likely to suffer significant loss. While there is decline in all cryptocurrencies, altcoins have remained relatively immune to bears’ impact on price action compared to Bitcoin which still accounts for nearly 60%-70% of total activity in the market and market capitalization of cryptocurrency market.
Bitcoin: Bitcoin, the progenitor of modern cryptocurrencies has finally declines back below 10K handle after nearly seven consecutive trading sessions. However, Bitcoin still has some level of lingering influence in favor of BTC bulls which has resulted in the pair oscillating above and below $10000 handle for the last twenty four hours. As of writing this article, BTCUSD pair is trading at $10020 down by 2.40% on the day. When looking from technical perspective, Bitcoin has declined below two of three key support levels which is preventing the pair from seeing sharp declines which could push the pair back towards 8K price range. However, the prevalent bias is still strongly in favor of bears making the pair susceptible to further declines in immediate future. All that’s left preventing the pair from sharp declines is strong support found between 9885-9795 price range. The pair needs to stay range bound in or above the mentioned price range while attempting to recover steady hold above 10K handle for pair to aim at scaling back towards 11K handling. A decline below mentioned price range makes the pair susceptible to decline towards 9500 & 9350 handle to the downside while there is strong resistance near 10230 to 10300 price range respectively.
Ethereum: Ethereum the second most valued cryptocurrency is in a much healthier place when compared to Bitcoin. In fact, it can be said that from among top three cryptocurrencies in terms of market cap – Bitcoin, Ethereum & Ripple, Ethereum is the one with least loss so far this week. While ETHUSD pair is currently trading at $178.20 handle down by 1.58% on the day, it is still holding steady and well above key support of $175 handle which needs to be breached for ETH to see any considerable loss in value. Ethereum is currently well positioned and is waiting for the right opportunity and trigger that could help ETHUSD bulls gain the strength needed to hold steady above $180 handle. When looking from technical perspective, the pair lacks a directional bias and is currently moving in a range bound fashion with neutral momentum well inside familiar price range. The pair has now made it clear and established its strength given its repeated attempts at scaling $180 handle which were highly successful. But, the pair still lacks strength required to maintain stable hold above said price level which is what ETH bulls are waiting for in immediate and near future trading sessions.
Ripple: Ripple, the third most valued cryptocurrency painted a picture in which its price action mirrored Bitcoin’s steep decline. While Ripple’s decline may not be as steep as Bitcoin, it still suffered considerable declines. The pair has breached past two week lows and is currently trading at price levels last seen in early August 2019. The XRPUSD has completely reversed any and all gains and recovery made earlier this month and is at position where it is most susceptible to scale fresh monthly lows. There is even possibility for the pair to decline below 0.2500 handle if current bearish price momentum holds steady. The XRPUSD is currently trading at 0.2543 down by 2% on the day and has so far held steady above previous session lows hit at 0.2529 price handle. When looking from technical perspective, the bears seem to have lost steam and are slowing down which is the reason for declines to stop barely above 0.2500 handle. But the pair is still not out of the woods and is trading well inside bears’ territory. The pair needs to move back above 0.2565 and maintain stable momentum between 0.256-.0.258 handle if it were to have any chance at breaching 0.2600 handle. Failure to move back above mentioned price level or decline below 0.2529 and 0.2503 handles could cause the pair to see sharp slide all the way towards August 2019 lows around 0.2485 handle.
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