The bloodbath in the crypto market continued through last week, as overall market cap touched the low of $115.5 billion and Bitcoin breaching the $4,000 level, touching a yearly low of $3456 level. The extreme weakness in the market was also aided by the sharp drop in the prices of alt-coins.
Despite the huge drop in prices of crypto, the volume in the market is still low with average volume for Bitcoin hovering around the $6 billion mark. According to a prominent trader and technical analyst, Peter Brandt feels that crypto market is entering that phase of its life when stale and weak money capitulates and strong hands accumulate strategically.
Coinbase CTP, Balaji Srinivasan said at TechCrunch in a session held Swiss crypto valley, Zug, “the cryptocurrency market tends to go through a bubble-burst-build-rally cycle, and major investors in the sector believe the latest crash of BTC is no different”.
With most cryptos trading around its year low levels, there seems no possibility of the reversal in momentum in the rest of 2018.
Bitcoin in the last week has lost close to 40% of its value, making a new yearly low figure of $3,456. Bitcoin has recovered a bit since then and is currently trading around the $4,000 level. In the weekly chart, we can see that it has broken below the “Descending Triangle” formation, which is extremely bearish.
In the weekly chart, 200 Day EMA line which is placed around the $4150 level is providing crucial support to BTC prices. It breaks the lows of the previous week, then it could reach down to $3000 level and eventually $1900 level.
Over the past seven days, XRP has lost close 25% but has been moving in a range bound fashion, between 0.38 to 0.58 level over the long term. XRP could get a bounce from the current level, as it has been majorly supportive in the past and stochastic is also indicating a reversal in the momentum. However, a break below from the current level, i.e 0.38 level could send the prices down to the 0.27 level, which is the next major support level.
Ethereum is the most underperforming crypto asset for the past few weeks and in the last week it has broken down from $150 level to $120 level. In our earlier analysis, it was stated that if Ethereum breaks below the $150 level, then it could reach as low as $100 level.
Currently, there are no definitive signs of a reversal in momentum in the market and any fresh wave of selling in the crypto market will break the ETH prices below $100 level.
Bitcoin Cash ABC
Since the fork on 15th Nov., Bitcoin Cash network has taken the full beating of the market and has dropped from the $630 level to around $180 level. The market is now showing some distinct signs of stability and is trying to break above the massively resistive 50 Day EMA line in the hourly chart.
EOS has taken over Stellar (XLM) to become the fifth largest cryptocurrency by market cap in the last week. The EOS is hovering around the 50 Day EMA line, which earlier was offering a strong resistance. If EOS price stays above the 50 Day EMA line, it will be a bit positive for the market and can reach towards the $3.80 level.