Cryptocurrency Market Update: Bitcoin bleeds under $8,000 as Ethereum and Ripple struggle at key support zones

01/09/2020 06:32:25 GMT|ByJohn Isige

Reversal sets in across the cryptocurrency landscape erasing $9 billion of the total market cap.
Bitcoin refreshes the $7,000 range following the rejection at $8,400.
Ethereum on verge of a breakdown after failing to hold above $140.

The cryptocurrency market is back in the red following several days of remarkable upward movement, especially for Bitcoin. The majority of the digital assets are posting losses in the range between 0.5% and 4%. Bitcoin Gold and Monero lead the market in declines having lost 3.26% and $2.67% respectively. All of the top three coins are also in the red with Bitcoin trading 1.12% lower, Ethereum at -0.47% and Ripple at -0.44%.

The data provided by CoinMarketCap shows that the selloff has wiped off $9 billion of the total crypto market capitalization. The market stands at $209 billion and features $87 billion in trading volume.

Bitcoin market update

Bitcoin retreated from the 2020 high at $8,464. The surge from the support at $7,800 was mainly fueled by the tension between Iran and the United States. However, the press conference held by Donald Trump yesterday assured the Americans and the world in general that everything is in control and Iran seems to be backing down.

Bitcoin is currently trading at $7,954 after adjusting from the opening price of $8,045. The 4-hour chart shows a downward momentum building. In tandem with that is the RSI, which is likely to breach the level at 50. Support is expected at $7,800, the 50 SMA at $7,500 and the key level at $7,000.

BTC/USD 4-hour chart

Ethereum market update

Ethereum, on the other hand, is trading at $139.35 after the key support at $140 failed to hold. As discussed in the price analysis, the rejection at $148 could have opened a Pandora box and ETH/USD is on verge of a further lower correction anticipated to retest $120, $115 and $100 support areas.

ETH/USD 4-hour chart

Ripple market update

XRP corrected towards $0.20 despite news of Thai bank adopting a new cross-border payments app powered by Ripple. Siam Commercial Bank (SCB) hopes that the new app will ease the tedious process of sending and receiving money abroad. Meanwhile, XRP is trading at $0.2050 while facing growing resistance at $0.21. The immediate downside is protected by the dotted trendline while the main trendline will come in handy later.

XRP/USD 240’ chart

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