The weakness in the crypto market deepened as the market approached the weekend, with the total market cap is now below the $120 billion. The market seems to be losing momentum and the downtrend should continue for a longer period of time than expected.
I think this year’s rally will be fuelled by some strong regulatory measures that will clear the air on Bitcoin’s legal status and other cryptocurrencies.
Bitcoin during the last week has reached towards the $3,500 level and is currently witnessing some buying from the lower levels, trying reach towards the $3,800 level. Bitcoin in the next several sessions likely to consolidate between the $3,200 and $3,500 level, $3,500 to $3,800 level and $3,800 and $4,000 level.
Until the market breaks above the 50 Day EMA slope, which is the first major resistance point, selling pressure will continue.
Ripple continued to trade with a downward force during the last week, but the downside was less aggressive compared to other coins. Ripple is currently at the second spot in the market cap rank, and the XRP/USD pair is likely to continue witness selling pressure. The $0.28 level underneath is strong support, and the pair has bounced higher every time after reaching there. The $0.35 level above has a bit of resistance and a break above could send the pair towards $0.40 level.
Ethereum was extremely negative during the past week as it slipped to the third spot in the market cap rank and is now trading below the $120 level. The market continues to be extremely noisy around the 50 Day EMA slope and in order to continue moving higher, it needs to break both the 50 Day EMA and psychologically important $150 level.
The next few sessions will be quite volatile as Ethereum implements the Constantinople hard fork of Jan 16th, which will pave the way towards implementing PoS consensus system. The next major support for the ETH/USD pair is at $100 level.
Bitcoin Cash has broken down nearly 25 per cent in the last week all the way from $160 level to $120 level. The market currently is hovering around the $125 level, but if it breaks below the $120 level, then major support is at 110 level and $80 level eventually.
I think the selling pressure will continue and until it breaks above the $140 level, traders would like to go long on the BCH/USD pair.
EOS in the last week has broken below the upward channel and broken below the both 50 & 200 Day EMA lines, which is an extremely negative development. Furthermore, the 50 Day EMA has broken below the 200 Day EMA which is referred to as Death Cross and indicates of a long term weakness in the EOS/USD pair.
If the pair fails to break above the $2.40 level, then further selling will continue in the market and will reach down to $1.80 level, which is massively supportive.
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