Bitcoin below $8,000 Drags the Crypto Market
This weekend Bitcoin (-3.02%) dropped below $8,000, dragging the sector down on increasing volume. The notable exception is Ripple (/+4%), who is climbing helped by the news about PayPal's pulling out of the Libra's association. Other losers this weekend, among others, are Ethereum (-2.72%), Litecoin (-2.8%), Binance Coin (- 2.85%), and Tron (-3.03%). The gainer side is less wide. Besides XRP, Stellar(+1.27%) and BCH(0.19%), although some Ethereum tokens fared well: Link(+7.9%). OSC (+16.5%) and CENNZ (+23%).
FIg 1 - 48H heat map of the Crypto Sector The market capitalization of the sector is now $212.18 billion, and the 24-hour traded volume is over $25 billion. The dominance of the bitcoin dropped to 64.72%
Hot News It seems Facebook Libra finds it difficult to retain its members. It is official. Paypal has left the Libra Association. Last Wednesday, other reports indicated that Mastercard and Visa is also weighing their participation.
Olaf Scholz, German Finance Minister, backs the creation of a digital euro. "we should not leave the field to China, Russia, the USA or any other private providers."
The United Arab Emirates will host a competition organized by the Ministry of Community Development. The competition, with a total price of 16,300 dollars, tries to encourage the development of blockchain-based applications for educational, social, and entertainment purposes.
Technical Analysis
Bitcoin
As seen on the 4H chart, Bitcoin breached the lower trendline of the wedge formation last Friday. During the weekend, we saw the price also drop below the descending trendline, which marks the bottom of a large pennant formation on the daily chart, and also moved the 50-period MA . The price is accelerating its descents in the recent bars and is approaching the $7.700 level. That level is a strong support, and on the last couple of occasions, on September 26 and 30, the price was firmly rejected.
The technical indicators are also bearish. The MACD points south, and the price is moving below the -1SD Bollinger line, while the band itself points down.
The most probable scenario today is the price continuing downwards to pay a visit to the $7,500 level.
The key levels to watch in order of importance are $7,700, $8,000, and $7,500.
Ripple
Ripple has been gaining bullish impulse recently. The price moves above its 50 and 200-period MA, and the price is above the +1SD Bollinger line. Today, it has drawn a sizeable upward candle with high volume on the news of PayPal pulling out of the Libra Association. Currently, the price is retracing a bit this candle, as traders take profits and also on the reduction of buyers caused by the bitcoin bearishness. The key levels to observe are 0.26 and 0.27. A bounce on the 0.26 would be a good place to go long. A breakout of 0.27 is an excellent place to add positions. The target area is between 0.28 and 0.285
Ethereum
Ethereum is moving in the middle of a descending channel, after the price broke the ascending formation on Oct. 5. The technical indicators are bearish. MACD is in its bearish phase. The price is below the 50 and 200-period MA and moving below the -1SD Bollinger line. Therefore, it seems ETH will continue moving downwards and test its supports of $168 and $165.
Link
Link continues its steady upward movement with al indicators pointing to a bullish trend. MACD bullish, price above 50 and 100-period MA and the price above +1SD line of the Bollinger Bands. Right now, it is in an oversold condition (touching and retracing from the +1SD Bollinger line). Thus, it needs to consolidate its latest action and return to a mean price consensus. It's worth watching it, as this token shows buyers are coming even when there is a clear bearish trend on Bitcoin and other major coins.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
