Crypto market falling today: BTC -10%
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Crypto market falling today: BTC -10%

By Federico Izzi - 11 Jul 2019

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The crypto market is falling considerably today. Following the four-day climb that had characterised the rebound begun last weekend and led by bitcoin, the whole sector is now in reverse. Bitcoin, after having tried to break the 13,000 dollars yesterday, fails to keep up and drops, similar to what happened three weeks ago. The decline during the 24 hour period is more than 10%. 

Source: COIN360.com

Like usual, bitcoin performs sometimes well other times poorly, and this day is marked by important declines also for most of the altcoins. 

Among the top 10, Bitcoin, along with Binance, which drops 6%, are the ones that suffer least compared to all the others. In the current downturn of the entire crypto market, it is worth noting the sinking of EOS which loses about 20%. Bitcoin Cash is back below $340, down 18%.

Ripple chart by Tradingview

Ripple, scoring a -15%, goes below 34 cents, returning to the levels of the first five months of the year. Ripple thus puts behind it the bullish climb that had characterised it since the second week of May, when it had gone a little over 50 cents in the last ten days of June.

The day sees a clear prevalence of red signs, more than 95% of cryptocurrencies, with green signs only for coins with low capitalisation. Aside from EOS, Quantum (QAU) performs worse, losing 22% and being the worst of the day, followed by Bytom (BTM) losing about 20%.

The sinking of these last hours features a rise in the volumes that since yesterday afternoon have demonstrated a positive trend. The current drop in the cryptocurrency market can be considered a technical retracement, as there is no particular news that could justify this movement, a technical rebound that did not have the strength to go beyond the resistances, namely the highs of June for bitcoin.

The market cap fell below $315 billion, the lowest level since the beginning of June, below the previous lows. Altcoins still suffer particularly from it, while bitcoin confirms itself as a refuge crypto. Despite the price slump, the dominance of bitcoin continues to rise and pushes towards 66%, levels that have not been recorded since April 2017. The bearish movement sees the dominance of Ethereum remaining just below the threshold of 9.3%. Ripple’s loss of value and strong weakness push its dominance down to 4.5% today, the lowest levels since December 2017.

Bitcoin chart by Tradingview

Bitcoin (BTC)

The failure to break the 13,100 dollars, leads to a decisive return of speculation and an increase in volumes and profit-taking. Technically, taking as a reference the daily closings, bitcoin seems to mark a double maximum, which is a signal to follow carefully in the coming days.

At the moment, bitcoin is able to maintain itself around 11,500 dollars. 10,000-9,800 dollars are the levels to be observed in the next few hours and days. In the event of a return below these levels, which are the levels of July 2nd, trading would increase as it is a threshold of confrontation between bears and bulls.

This fear would disappear if bitcoin were to recover its share of 12,500-13,000 dollars, but at the moment the bearish trend seems to prevail, so it is good to observe the resilience or lack of it by the levels of support. The most direct one is in the 11,000 dollar area, a step away from the current levels, the most important one from a monthly point of view is in the 10,000-9,800 dollar area.

Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum’s tumble is of greater concern. The rupture of the 280 dollars violates the downward trend of the dynamic bullish line that began from the lows at the end of April. Ethereum returns below the resistance violated in mid-June, area 285-280 dollars. These levels are to be followed in the next few hours. 

The fate of Ethereum is being determined for the next two weeks, in conjunction with the closure of the next monthly cycle started by the relative lows started on June 9th. It is a cyclic phase in line with the weakness, so it is necessary to observe the holding of the supports. The most important one is in the $275-280 area, the next one would be in the $250-255 area. 

Ethereum needs a 15% increase to 310-315 dollars, but at the moment, like for bitcoin, it is necessary to observe the resistance of the supports. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it 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 Diretta.tv 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. Since May 2017 he is officially a Bigbit technical analyst. 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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