- The cryptocurrency market is bleeding as the community points fingers on whales.
- Bitcoin was rejected at $7,400 but a break below $7,300 support was unstoppable until $7,100.
- Ethereum plunges mercilessly below $280 and $270 support; $260 must hold to stop declines.
- Ripple is seeking support at $0.305 but a drop to $0.30 is imminent.
The market has been busking in the slight recovery following the drop that occurred towards the end of July and spilled over into August. The total market capitalization shrank from $277.8 billion to $228 billion. This represents a 17% decline or a loss of $49 billion in one month. Bitcoin (BTC) lost at least $12 billion while the altcoins lost $39 billion. Bitcoin dominance is the market continued to rise amid falling prices.
There was a fresh catalyst supported by positive news in the wake of the ETF saga in August, The battle for an ETF is not over but its time will come sooner or later. The current bullish trend in the market is threatened by rumors of Bitcoin whales intending to dump a huge amount of BTC in the market. The crypto currency market is still greatly volatile especially with a market capitalization that is less than $300 billion, dumping could have devastating effects not only on Bitcoin but also on the altcoins.
The news in the market is that a Bitcoin whale, possibly Silk Road; a darknet website that was shut down by the FBI or Mt.Gox, the cryptocurrency exchange that closed doors in 2011 after being victim to a hack attack. The exchange lost over $473 million in the event leading to a bankruptcy filing. However, a lawsuit by Mt.Gox creditors has placed the company in civil arbitration. Mt.Gox trustee has been preparing to compensate the creditors who intent to receive Bitcoin Cash and Bitcoin assets.
Bitcoin price technical picture
Bitcoin price has sustained an uptrend since the previous correction that saw it test the support at $6,800. The crypto recently broke above $7,300 but stalled short of $7,400. However, a sharp decline from $7,384.05 intraday highs has plunged below $7,300 and $7,200 support areas. The next support at $7,100 appears to be holding ground. There is a slight bullish correction from the support but $7,000 is within reach unless the price can retrace higher above $7,200.
Ethereum price technical picture
Ethereum has broken below the support at $280 we discussed in the previous analyses. There is a huge correlation between Ethereum and Bitcoin price. The slide in Bitcoin appears to have affected a majority of cryptos in the market. ETH/USD is seeking balance above $260 after dismembering the support at $270. Ethereum declined towards $250 in August, therefore, a support above $260 is very essential. Otherwise, Ethereum could test the former support at $250.
Ripple price technical picture
Ripple, on the other hand, has not been spared by the bear wave that swept across the market today. The trend is still strongly bearish following the break below the support at $0.330. XRP/USD is currently testing the week support at $0.305. The crypto could brush shoulders with $0.30 unless a reversal occurs towards the next resistance target at $0.3250. Ripple is also trading below the 15-minutes 50 SMA while technical signals remain strongly negative.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.