The real news in the world of trading is that the top 15 cryptocurrencies are about to close the week coloured with green, a favourable indication for laying the foundations for the supports that have been touched over the last few days amidst the alarming sentiment that arrived in the middle of the week.
Between Wednesday and Thursday, the Fear & Greed index reached its lowest level since it was introduced in January 2018, marking level 5 on a scale from 0 to 100.
The previous historical low (8) was scored on February 6th, 2018, the day when the bitcoin price reached a daily low of $6,000, marking one of the ten deepest declines in the history of the cryptocurrency.
In less than two months from the historical highs reached in mid-December 2017, the decline extended to over 65%. In the following three weeks the reaction provoked a rebound that doubled the quotations, approaching the 12000 dollars mark, levels recently revised although with a decidedly different technical context.
If at the beginning of February last year the balance from the beginning of the year was negative (-55%), today the prices of bitcoin have gained more than 180% from the price set on January 1st.
Considering that each time the Fear & Greed index fell below 15 points in the following weeks, prices have always reacted positively, with increases of between 10 and 50%, this indication gives hope for a further increase in the next few days.
The best cryptocurrencies of the trading week
Ethereum Classic (ETC) scored the best rise in the Top 50, recovering more than 30% from last Friday’s levels. It’s a high jump that brings ETC’s prices back above $7.5, levels abandoned at the beginning of July.
Ethereum Classic along with Bitcoin (BTC) and Monero (XMR) are the only big ones to score a positive balance since the beginning of the
On the opposite side, the worst weekly decline is that of Algorand (ALGO), which has dropped more than 20% since last Friday’s close. Despite the fact that the ALGO cryptocurrency has only been listed for two months (June 21st), today with over 140 million dollars it occupies 42nd place in the general ranking, even though it registers a loss of over 80% from the opening price set just above 2.3 dollars.
After having sunk close to 50 cents, at the beginning of August the strong rebound pushed it to reach 90 cents in a few days, achieving a performance of more than 40%.
The rebound is now almost totally cancelled out by the very bad performance of the last two weeks.
For Algorand it is necessary to go back above $0.9 to start building a solid floor from where to start again. On the contrary, sinking below $0.50 would affect the ambitious project developed by the Italian Silvio Micali – professor at the Massachusetts Institute of Technology MIT – which aims to streamline and make more secure and transparent blockchain transactions.