The bears continue to scratch
The bears continue to scratch

The bears continue to scratch

By Federico Izzi - 18 May 2018

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The bears continue to scratch. Leggi qui l’articolo in Italiano.

We go down again, dangerously.

The sales that began overnight on the other side of the globe continue during the first light of dawn.

Of the 1600 cryptocurrency currently existing more than 80% are in negative territory, total capitalization returns below 370 billion, highlighting the difficulty of stabilizing beyond the 400 billion threshold, as happened during the first ten days of May.

Despite the dangerous return of prices around 8000 dollars, Bitcoin is still more than 37% of the market share, discovering the weakness that in recent days grips the Altcoins.

Among the first 20 coins, this morning suffer in particular Iota (MIOTA) and Bitcoin Cash (BCH) with decreases of around 10%. Eos (EOS), Tron (TRX), Cardano (ADA) and Stellar (XLM) also dropped by about 7%, canceling the increases accumulated yesterday.

Cryptocurrencies' capitalization

Bitcoin (BTC)

The downward trend in prices since the highs of 5 May does not slow down.

In 12 days bitcoin loses more than 20% of its value. Technically, a structure of decreasing maximums and minimums is very evident, which in these first hours of the day have brought the prices back dangerously close to the threshold of 8000 dollars. Prices are located in a sensitive support area.

The eventual breaking of the support, also psychological, would extend the retracement movement beyond the 50%, modifying downwards the entire monthly structure begun in the first days of April.

Operating levels

UPWARD TREND: The failure to recover the 8400-8500 area continues to make the bears dance. A return of volumes in purchases is required.

DOWNWARD TREND: The failure of the last bulwark to support the bullish trend in the 8000 area, will open the door to the bearish trend and the possibility of further extensions up to the $ 7400 area.

Cryptocurrencies' capitalization

Ethereum (ETH)

Ethereum’s prices hold better.

The decline that for four days has been experiencing a fall of more than 10% manages not to extend beyond support in the $ 640 area.

The downward medium-term trend will remain so with prices below the $750 threshold.

Operating levels

UPWARD TREND: Prices continue to move away from the resistance of 750 dollars, a threshold that remains important to return to evaluate bullish operation.

DOWNWARD TREND: If the first support does not hold at $690, it opens the door to an extension to the next levels at $650-640. Unlike bitcoin, which has reached 50% of the retracement, here there is room for up to the $600 area so as not to affect the bullish trend built during the last month.

Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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