Home Analysis Crypto Weekly Byte: Downtrend continues as the market goes below $400 Billion

Crypto Weekly Byte: Downtrend continues as the market goes below $400 Billion

Most Cryptocurrencies went down last week as Bitcoin went down. The market once again dropped below $400 Billion, going from $455 Billion to $388 Billion. Most of the damage was done towards the weekend, when it was revealed that the South Korean authorities had raided their largest exchange. A market wide sell-off started when this news broke out.

Bitcoin

Bitcoin crashed below a a key support at $8,800 and is currently trading just below $8,400. The upward momentum we had has been broken down and we now have parallel downward trend-lines. We may have a support at $8,250, but it is not clear at this point. The only way to know for certain if Bitcoin remains within the trend-line and bounces off at the support by 16th May. You may enter the market if such a scenario occurs with stop-loss at $7,800.

Other buy zones are $8,800 and $9,200 with later being the safest zone to buy at. Key resistances to take in profits would be $9,700, $10,000 and $11,500. We expect it to take a while before Bitcoin reaches those targets, so we do not recommend leverage trades.

Ethereum

Ethereum was one of the very few Cryptocurrencies that continued growing despite the market slump. The movement slowed down when it was reported that SEC would be deciding if Ethereum was a security or not in a meeting last week. But later on, it was revealed that there was no such meeting scheduled and the price quickly recovered.

In our last week’s analysis, we had predicted if there was positive or neutral views on Ethereum buy the SEC, the bull run would continue. Since there was nothing from them, we expect it to go higher. We asked our readers to set buy orders at 0.083 BTC with stop-loss at 0.0796 BTC. Continue holding this, as we expect Ethereum to hit 0.1 BTC by the end of this month ion it continues on the same path.

Ripple

Ripple has been a bit unpredictable lately. It was moving horizontally initially, but it crashed when Laura Shin, the host of popular Crypto podcast Unchained dedicated an episode to Ripple which caused a lot of negative press.

Set buy orders at 88 Bits with stop-loss at 80 bits. Take a major portion off your profits at 94 bits and the remaining at 100 bits. Do not do high volume leverage trades for ripple as the movement has been quite erratic.

Bitcoin Cash

Bitcoin Cash has been heavily over-bought for the past few weeks and the price saw some correction last week. BCH went from a 10 week high of 0.185 BTC to 0.155 BTC and is currently trading at 0.168 BTC. The upward support trend-line is still very much intact and we may see a major trend reversal this weekend as support and resistance trend-lines meet.

For short-term leverage trades, set buy orders now with tight stop-loss at 0.164 BTC and take profits at 0.168 BTC. If the sell order is not fulfilled in the next two days, sell it manually and only buy back after a trend reversal has been confirmed. If confirmed, the next resistance is only at 0.185 BTC.

Litecoin

Litecoin has been crashing pretty hard, going from a high of 0.0184 BTC to 0.0159 BTC, losing more than 13% of its value in one week. But the resistance trend-line has been broken and we may see Litecoin surge once again. Set buy orders at 0.0162 BTC with a stop-loss at 0.016 BTC and take profits at 0.0178 BTC. But we would not recommend a leverage order yet because it is not clear how soon a rebound would occur.

DASH

Onslaught of DASH continues as it reached a two month high of 0.058 BTC which has been in a downtrend ever since. A trend reversal failed at 0.049 BTC and is currently trading at 0.046 BTC. The long-term support and resistance trend-lines are about to meet this week which will be good entry point for long-term holders. There is no clear evidence of opportunities for good short-term trades yet.

LEAVE A REPLY

Please enter your comment!
Please enter your name here