At the time of writing, the Bitcoin price is sitting at $11,241, representing a loss of 14.16% in the last 24 hours. More than $1.9B worth of BTC were exchanged in the BTC/USD market representing a 41% share of daily volume.
The past few days have seen a series of flip-flops on news. First was the news of the Korean government banning cryptocurrency trading that led to a sharp fall in prices. Then came the reputation that there was going to be no ban in the near future. The latest news from South Korea is that they have still not given up on the plan to shutdown cryptocurrency exchanges. The markets reacted with a sell-off in all virtual currencies.
The second news was that Ripple had cooperated with MoneyGram for money transfers.
This shows that the traders should not impulsively buy or sell on any news. It’s always better to wait for a trend to form and then buy into it. Is the current fall a buying opportunity or is there more to go? Let’s find out.
For the past four days, the bulls have been attempting to hold the critical support of $12,600 to $12,900 in Bitcoin and push prices back into the symmetrical triangle.
However, the bears did not allow the pullback to cross above the 20-day EMA.
Today, when the cryptocurrency broke below $12,500, it attracted huge selling, which resulted in a sharp decline to $11,000, close to the next support of $10,704.99.
We believe that the bulls will attempt to pullback from the current levels, but the bounce will not sustain and the BTC/USD pair will crack the $10,704.99 level and fall to $8,000.
The 20-day EMA and the 50-day SMA have completed a bearish crossover, which is a negative development.
Our bearish view will be invalidated if price climbs back above $15,000 levels.
Ethereum will find it difficult to breakout of the overhead resistance zone of $1382 and $1434 and that is what happened. The cryptocurrency returned from a high of $1424.3 on Jan. 13.
After maintaining above the $1250 levels for three days, the bears broke down below the support, which attracted profit booking. As a result, the cryptocurrency plunged to $966.64, which is just above the 61.8 percent Fibonacci retracement levels of the recent rally.
We also find a negative divergence on the RSI, which is a bearish development.
If the support zone between the trendline and $940 holds, we may see an attempt to pullback, which is likely to result in a range bound trading in the next few days.
Our view of a trading range in the ETH/USD pair will be invalidated if price breaks below the uptrend line.
Besides, here is the situation of some other coins in Top 20 on Coinmarketcap in the past week:
Bitcoin Cash is down 8.6% to Ƀ0.1648 with volumes of Ƀ36.9k and down 20.17% against the dollar at $1975.42.
Ripple is down 12.92% to Ƀ0.0001153 with volumes of Ƀ40.3k and down 24.73% against the dollar at $1.37.
Zcash is down 4.64% for the day to Ƀ0.04566 per ZEC and down 17.56% against the dollar to $541.83 with an average volume of Ƀ6.5k for the 24 hour period.
Litecoin is down 15.28% against the dollar for the day at $200.95 and down 2.66% to Ƀ0.01684 on volumes of Ƀ14.5k.
Dashcoin is down 6.63% at Ƀ0.06815 with Ƀ7.6k volume and down 19.16% against the dollar at $809.72.
Iota is down 6.44% to Ƀ0.0002471 on Ƀ3.0k volume.
Ether Classic is down 9.44% to Ƀ0.002772 with volumes of Ƀ11.7k and down 22.9% against the dollar at $32.38.
Monero is down 13.22% against the dollar at $347.26 and down 0.17% against Bitcoin at Ƀ0.02921 on volumes of Ƀ10.9k.
Neo is up 5.52% for the day to Ƀ0.01299 per NEO and down 7.37% against the dollar to $154 with an average volume of Ƀ36.9k for the 24 hour period.
Waves is down 6.33% to Ƀ0.0007408 on Ƀ2.8k volume.
Stratis is down 14.31% to Ƀ0.001353 on Ƀ4.0k volume.