Press "Enter" to skip to content

Why Bitcoin Is Tanking and Why You Should Keep your Cool

While the last few days saw a low-volume consolidation in the prices of the major coins, with no strong moves in any direction, today sellers returned in early trading. The weaker currencies are down by double digits, but even the relatively strong Bitcoin, Monero, EOS, NEO, and Ethereum Classic are more than 5% lower, with only Tron sporting gains among the Top 20 coins.

With no obvious negative catalyst present, the selloff is still, mostly technical in nature, as the short-term trends remain dominant in the segment. Altcoins are clearly lagging Bitcoin, with Ethereum and Ripple still being the biggest laggards of the market, as the second largest coin now retraced all of its gains since the December break-out.

BTC/USD, 4-Hour Chart Analysis

Bitcoin, on the other hand, is still holding up above last week’s lows although it violated the support zone near $7650 amid the broad selloff. With the short-term picture being bearish, traders should still not enter positions here, but long-term investors could add to their holdings. Short-term resistance is still ahead near $8400 with a stronger zone found between $9000 and $9200, while primary support below the recent swing low is between $6750 and $7000.

ETH/USD, 4-Hour Chart Analysis

Ethereum is testing the support zone around the $400 level after today’s break-down, and the coin remains the weakest major from a short-term perspective. As the long-term picture is now severely oversold, a spike below support and a swift recovery could set up a major bottom in the coin here, with resistance levels at $450m $500, and near $625.

Market Cap of Coins at $280 billion as Altcoins Weigh

With still no significant leadership present in the segment, the total value of the market continues to slide, with Bitcoin’s dominance edging higher. Ripple, Bitcoin Cash, Litecoin, Stellar, IOTA, and Dash are among the relatively weak coins today, while there is no short-term bullish currency even among the stronger ones.

XMR/USDT, 4-Hour Chart Analysis

Monero is still one of the less bearish majors, holding up above last week’s low together with Bitcoin, not far off the key $200 level that has been in focus for two weeks now. With the long-term picture clearly being ripe for a durable rally, traders should monitor the coin, as it could be among the early leaders on the next upswing.

That said, short-term traders shouldn’t enter the market here, as the trend in the segment weighs heavily on XMR. Support levels are found at $175 and $150, while above $200 the next main resistance level is at $240.

Stay tuned for our detailed technical analysis coming out later on today.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Read the article from the original source here

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty − nine =