Last week, was horrific for the overall market as for the first time Bitcoin breached the crucial $5,500 level in 2018, marking the return of fresh bear phase in the market after two months of stable price movements. Ethereum also gave way to Ripple to become the second largest coin in terms of market cap and now the gap is nearing $4 billion.
The rout in this market is caused by the hard fork of the Bitcoin Cash Network which split the network into two factions, Bitcoin Cash ABC (the original client) and Bitcoin Cash SV ( the Craig Writh’s faction). There was a lot of uncertainty in the market relating to the hard fork, the exchanges also suspended trading in the BCH counter before hard fork due to extreme volatility and prevent price manipulation.
The market cap of the crypto market is now hovering around the $178 billion mark, lowest in 2018 and most of the cryptocurrencies are trading in the red zone with no sight of a positive pullback in the near term.
The market which was showing signs of recovery from the year-long selling pressure is now witnessing a fresh wave of selling pressure. Bitcoin has broken below the crucial support of $6,200 level and has breached the $5,500 level in last week, diminishing the hopes of a year-end rally. BTC prices are hovering just around the $5,300 level and continuing to trade with a bearish sentiment.
The market still continues to witness a lot of selling pressure, with 50 Day EMA placed around the $5,600 level is offering strong resistance. With bulls running out of the market due to recent carnage, BTC is likely to test the $5,200 for support which extends down to the $5,000 level.
Last week for Ethreum was one of the worst, as it slipped to the third spot in the market cap rank, giving way to the Ripple and the gap has widened to close to $4 billion mark.
Ethereum is now trading just above the $150 level, a good decline of 25 percent from the week ago levels. There is a minor support at the $148 level and if it breaches, then it will open the door towards the $100 level.
For miners also, mining Ethereum has turned unprofitable with rising energy cost and severe bearish phase in the market.
Bitcoin Cash ABC
The uncertainty in the Bitcoin Cash network guided the market to fall significantly but even after three days of the fork, the market continues to look uncertain. Bitcoin Cash ABC faction continues to get a lot of support from the market players and is currently trading at $256.
The 50 Day EMA continues to look extremely resistive and until the market stabilizes, it will be difficult for us to make any analysis of the coin. Hash rates are purely in play in the market and is currently favouring the Bitcoin Cash ABC.
Ripple has now become the second largest cryptocurrency by market cap and is comfortably well above the Ethereum.
Ripple had managed to restrict its downslide and has recovered significantly. Now the market looks to consolidate between the $0.52 to $0.458 range and could witness buyers coming back into the market from the lower range. If the market succeeds to break above the 50 Day EMA line, then it could reach towards the $0.52 level easily.
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