The crypto market is down again. It is a day in contrast to the trend, with red signs prevailing. Over 75% of the crypto market is in negative territory. The contrasting trend of this week continues, showing an alternation of positive and negative signs.
The day highlights the further collapse of volumes, which fall to just over 45 billion traded in the last 24 hours. The overall volatility shows a downward trend with bitcoin which, after having revised the 3% during this contrasting trend in the narrow range of this week, now returns again to 2.8%.
The first 20 cryptocurrencies per market cap are down, all in negative territory. The deepest declines are recorded by XRP and Iota, both down 2%.
Among the best there is Centrality (CENNZ), in 90th position and with a capitalisation of 37 million dollars, the only one among the first 100 with a double-digit rise of 17%. Centrality is an unknown token that operates on the Ethereum platform. It is a token that aims to offer venture services in a decentralised peer to peer network.
By contrast, among the worst, there’s Zilliqa that with today’s drop of 16% is proof of the anomaly that occurred yesterday on Bithumb. Today Zilliqa is trading at low volumes and returns below 0.005 dollars. After the abandonment of the project by its founder, Zilliqa seems definitely in the hands of speculation.
The market cap returns to $215 billion. The dominance of bitcoin, ethereum and Ripple is unchanged from yesterday.
From a technical point of view, bitcoin is experiencing a difficult phase, characterised by a lack of strength to recover the threshold of 8,550-8,600 dollars, level that coincides with the retracement of 50% of the movement that bitcoin had during 2019.
The $8,550 area is at 50% of the Fibonacci retracement and has been a particularly sensitive price level in recent hours. Whenever the bitcoin value is on this threshold, the bearish pressure increases. After that bitcoin prices have attempted to rise above $8,400 in the last 24 hours, prices have slipped back to $8,100.
This trend could be dangerous. If the prices do not show a consolidation movement and then an attack of the $8,500, with the support of the volumes that are currently missing, it would be obvious that this is just a break before a further sinking. At this point, a test phase around the 7,400-7,200 area would be quite likely. Bitcoin must recover as soon as possible the weekly maximum levels around the 8,400-8,500 dollars area.
For Ethereum, after the failure to push above 185 dollars, levels tested between the end of September and the first days of October, prices return to the 170 dollars area. Ethereum needs to avoid compromising the bullish trend of 2019 and not return below the $155 area.
On the other side, to be able to see some positivity again, it is important for ETH to recover first the 185 dollars and then go on to review the technical and psychological area of 200 dollars.