FLASH: Bitcoin (BTC) plus the rest of the cryptocurrency market is in downward spiral, as the whole market has lost over 10% of its total value in just a few days.
The Big Q: Should traders and investors be worried, as these kinds of retracements welcomed by enthusiasts (who have not lost all of their money) to make new entries?
The Big A: Take a look at the market and see what is happening with the Top coins, as follows:
BTC has fallen to its 20-Day EMA, where price has bounced a bit. But, it is close to its early July lows.
Expect the price to bounce between 9,000 and 10,000 before making its way upwards again, towards the 12,000 and 13,000 and higher.
Over the past 2 weeks, volume has gone from $20 to 27-B. Also, Bitcoin’s market dominance is already above 65%, headed towards 70%.
Putting all this information together players hope BTC is on the right path to mark 15,000 by the end of Y 2019.
Some believe that this latest downturn is just a bump in the road and the market will pick up its positive momentum again soon.
Pay attention to retracements towards the 200-Day EMA to make new entries.
Bitcoin had a bad trading weekend, and Ethereum has fared worse. Since last Wednesday, it has lost about 35% of its total value, going from close to 320 to 204 before recovering back to the 220 area. Depending on how BTC performs expect ETH to follow.
Look at the chart above and you see that ETH is trading above its 200-Day EMA, a Key support level. As long as price is able to close above this area, I do not expect ETH to fall further.
If the market recover its momentum Ethereum will be back to its 50-Day EMA and 20-Day EMA with it.
Litecoin, 1 of the Top performers of Y 2019, has not been able to sustain its yearly gains, and it has tumbled down below most of its EMA”s.
At the moment, LTC is trading just above its 200-Day EMA at 88. Just a few days ago, Litecoin was trading above its 20-Day EMA at 117. The coin has lost over 30% in 3 days.
If Litecoin is able to keep trading between its 200-Day and 100-Day EMA’s, do not expect any sudden dives, as the 200-Day EMA looks to be providing solid support.
Bitcoin Cash has been hit hard by the sudden move South in the crypto market. Its price, which was trading above 400 just last week, is now just above 290, with BCH losing close to 40% of its total market value in a few days.
Although BCH has been one of the worst performers of the last few days, price-wise, it is far away from its yearly lows at 120.
Looking at the chart, the price is trading below all its EMA’s, even though volume-wise BCH is supported by a massive wall near 168-170. If BTC recovers, so will BCH.
Ripple (XRP) is a coin to avoid, because looking at the price action, things do not look good.
XRP is now close to its yearly low, which was around 0.283, and it is trading below all its EMAs – a sign of great weakness. If XRP breaks down from here it has not seen the Y 2019 bottom.
Investors should be weary of making new entries as the market is currently under turmoil, and the coins that usually take the hardest hits are the ones on a clear downtrend like XRP.
If Bitcoin recovers, XRP will follow, for now watching for tell.
Conclusion: At this point, the market could either go up or down, and it all comes down to BTC’s performance, as it dominates this speculators market.
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