Cryptocurrencies in a tight range as Bitcoin Hash rate drops 28%

After the sharp bounce made in Monday's early morning, cryptocurrencies have found resistance started to move in a quite tight range. At the moment of this writing, the movements of the session are as following: Bitcoin ( -2.28%), Ethereum (-1.82%), Ripple(-1.61%), and Bitcoin Cash (-2.34%). These figures differ slightly with 24H values. It shows only today's movements. The best 24H move in relevant crypto was produced by DASH (+5.73%). On the Ethereum-based tokens, LINK (-6.18%) and HEDG(-14.1%) continue moving bearishly, whereas CRO(+5.02%) and SNX(+12%) show a strong upward bias.

The market capitalization of the sector is currently $147.540 billion (-0.68%), about one billion less than 24 hours ago, as the traded volume in the last 24 hours faded by 37.8 percent, to $36.45 billion. The Dominance of Bitcoin is relatively unchanged at 64.64 percent.

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Bitcoin hash rate went down from 136.264 TH/s down to 97.92TH/s. Although some news outlets called for a 40 percent drop, it really is a 28 percent drop. That is not critical. The critical metric is Bitcoin Mining Profitability, which is currently at a historical low.  If prices continue, many miners will likely be put out of business.

According to a news piece by Marketewatch.com, US Business would need close to $2 trillion bailout fund to escape from recession. Scott Minerd, chief investment officer at Guggenheim Investments, estimated that the Chinese economy is receding at a 15 percent annual rate, and the European economy is likely following it. He says there is a high chance that for the first time since 1930, the USA is facing the possibility of a downward economic spiral.

Technical Analysis - Bitcoin

Bitcoin is creating an engulfing 4H candle after being unable to hold above its $5,500 resistance level. If, finally, the candle ends as an engulfing candle, the chance is high that it will seek the bottom of the descending channel, near $4,000, or at least test the $4,500 previous low.  The critical level is $5,000 support. Below that line, the price is likely to continue down. Above that level, based in the MACD still bullish and the Bollinger bands showing horizontal direction, we estimate the price could still be moving in a range.

Ethereum

Ethereum has not yet been able to break the upper side of the descending channel, and it is also making an engulfing pattern that is breaking the recent lows of the tight range in which it was moving. A close below $110 would bring back the sellers. If that happens, the potential fist target is $100, but a visit to the bottom of the channel, at about $86, is also likely.

Ripple

Ripple is also following the general flow of the market and has made an engulfing candle at the resistance level set by the upper side of this likely descending channel ($0.15). The level to hold is 0.14. Below that level, it is likely a drop to the bottom of the channel at 0.12, although 0.13 may keep the price as it was the last bottom two days ago.

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