Cryptocurrencies market update: Bulls retreat into hibernation as Bitcoin, Ripple and Ethereum explore the rabbit holes
|- The battered bulls take a step back in a bid to regroup and plan the next move.
- Bitcoin breaks the support at $7,800; the downward momentum targets $7,700 in the short term.
- Ethereum and Ripple struggle to contain the losses above $135 and $0.20 support areas, respectively.
The rollercoaster rides in the cryptocurrency market intensified this week. The market generally corrected higher with digital assets such as Bitcoin and Ripple significantly growing in value. The majority of cryptocurrencies are trading substantially higher than the levels posted in December.
Many experts believed that the surge in the price of cryptocurrencies, particularly Bitcoin was driven by the tension in the United States due to the attacks with Iran. However, as the tension cleared, Bitcoin reversed the trend, breaking under the $8,000 level. Other cryptos have followed in the footsteps of BTC reminiscent of the red paint across the market.
Bitcoin price update
The surge in Bitcoin price hit a snag on touching a strong resistance line. The descending trendline commenced after BTC hit highs around $13,800 in June 2019. Its impact on recovery cannot go unnoticed and is likely to continue limiting the advances made by the bulls.
In the meantime, Bitcoin is trading at $7,730 after breaking the last weekend’s support at $7,800. Fortunately, the price is sitting above the 50-day SMA (key support line). On the other hand, the RSI’s downward trend puts the support at $7,700 at great risk. To be on the safe side, Bitcoin must defend the 50-day SMA if not $7,700 to avert possible losses to $7,000.
BTC/USD daily chart
Ethereum price update
Ethereum is struggling to stay above the support at $135 after losing 1.5% of its value on Friday. The price has also corrected under the 50 SMA on the 4-hour chart. The RSI signals that the downward momentum is here to last, besides ETH/USD is not oversold. On the other hand, the main trendline support is in line to offer support if losses grind towards $130.
ETH/USD 4-hour chart
Ripple price update
Ripple is also trying to stay above the key support at $0.20 after the rejection that started at $0.225 gained momentum in the last 24 hours. An immediate support is offered by the 50-SMA on the 4-hour chart. However, there is a big chance that XRP will retreat under $0.20 in the near term. The downtrend is supported by the MACD’s bearish cross and the return into the negative zone.
XRP/USD 4-hour chart
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