Crypto Tech Analysis: SEC Influenced Bearish Market Rally in Play

“Ethereum ETH Crypto Coin Stock Photo” (CC BY 2.0) by Crypto360 at Flickr

Cryptocurrency market over the course of this week has lost nearly US$ 17 Billion in overall market capitalisation and most of the decline stems from Bitcoins sharp decline. The progenitor of cryptocurrency suffered loss of nearly seven percent since Monday. This decline was triggered by delay from US SEC to respond to three Bitcoin ETF proposals submitted by top players in the cryptocurrency market yet again. Bitwise, SolidX are some of the long standing players aiming to become first Bitcoin ETF in the market but SEC’s delay in response while mostly expected by the market came at the time when market was stagnating and looking for directional cues to make a breakout resulting in bears gaining the upper hand. Altcoins remain passive and relatively immune to volatility in Bitcoin causing them to see comparatively lesser declines when considering Bitcoin’s losses.

Bitcoin: Bitcoin is currently trading well near mid- 10K handle having suffered sharp declines over influence from SEC’s decision to delay Bitcoin ETF’s yet again. Bitcoin lost more than US$ 14 Billion in market cap since last Monday and has a current market cap of US$ 189.62 Billion. The BTCUSD pair is currently trading at $10639 down by 6.58% on the day as of writing this article. When looking from technical perspective, the price momentum favors further decline in immediate future given prevalent bearish bias. The price is well below 9 and 50 SMA’s in most intra-day and daily charts while 30 min and 1 hr chart see price below all three SMA’s – 9, 50 and 100. RSI momentum used to measure momentum of price is currently well below oversold level at 29 with signal line seemingly flattening out suggesting bearish bias is likely to remain steady in immediate future. Bitcoin is likely to rebound if it managed to stay above $10500 but failure to stay above could result in further steep declines towards 10000 handle before Friday.

Ethereum: Ethereum has had a relatively safer price action compared to Bitcoin. We could even say that Ethereum remains relatively unchanged despite declines when compared with Bitcoin as Ethereum’s market capitalization still remains above 22 billion since Monday. Ethereum has lost nearly US$ 610 Million but still has a market cap of US$22.25 Billion and ETHUSD pair is trading at $208.95 down by 0.41% on the day as of writing this article. When looking from technical perspective, bears’ grip on price momentum of ETH seems clearly evident but bears lack enough strength to create an upset or breakout rally. The price is below all three SMA’s – 9, 50 and 100 across all intra-day and daily charts but the RSI indicator used to measure momentum is seeing signal trade remain well in neutral levels at 48-40 across intra-day and daily charts suggesting breakout is clearly unlikely in immediate future. Expected support and resistance for the pair are at 206, 204, 202 and 210, 213, 214 handles respectively.

Ripple: Ripple similar to Ethereum suffered relatively less declines and remains well within familiar levels albeit falling below 0.30 handle – a key psychological price level. Ripple lost over US$ 290 Million in market cap since Monday and has a current market cap of US$ 12.62 Billion. As of writing this article, XRPUSD pair is trading at 0.2961 down by 0.77% on the day. The technical picture mirrors Ethereum, the price is moving well below all three SMA’s – 9, 50 and 100 across all intra-day and daily charts while RSI indicator used to measure price momentum is moving with downward incline but remains above oversold territory and is moving within 45 to 43 levels across intra-day charts. Expected support and resistance for the pair are at 0.2950, 0.2945, 0.2930 and 0.2970, 0.2990, 0.3000 handles respectively.

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