Crypto market, the bounce effect weakens
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Crypto market, the bounce effect weakens

By Federico Izzi - 3 Dec 2019

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It’s a positive day with the prevalence of green signs for 70% of the crypto market, however, today’s signs do not give the right support to the bullish bounce that started last week and that seems to have died out with the Black Friday weekend, where the green signs have been supported by the volumes that currently continue to decrease, falling below the 50 billion in the last 24 hours.

Source: COIN360.com

In any case, the crypto market differs from the decidedly bad day in the stock market world. Yesterday’s closures mark the deepest drop of the last few months with the European listings that have recorded losses of more than 2%.

The top three in the ranking this morning fluctuate all around parity. Among the big is Monero (XMR) which stands out with a rise that manages to push over 5%, benefiting from the hard fork that ended in recent hours, which leads to a new implementation of the ASIC-resistant mining algorithm.

Among the big crypto in the top 20, the most evident rises are those of Huobi Token (HT), linked to the Asian exchange of the same name, which earns 5%. The best is Maker (MKR), which with a +8%, tries to remedy the sinking that had characterised the following days after the historic transition from single to multi collateral on November 18th, which led MKR prices not to celebrate this event by dropping about 40%. Today, just like yesterday, Maker follows in the footsteps of the recovery and also today is among the best of the day.

Among the best today there is another token from the DeFi ecosystem, Synthetix (SNX), which rises by more than 20%, trying to recover the value of 1.40 dollars. Others with double-digit increases are Matic Network (MATIC, +19%), while Yost (YOST) and Raven Coin (RVN), are up by more than 11%.

Among the worst are the Silver Wave (SLV) and DX Chain Token (DX), both downhill by more than 13%.

Overall, the market cap fails to return above the $200 billion mark. The dominance of Bitcoin is anchored at 66%, Ethereum remains at the levels of the last days, staying above 8.1%, while Ripple continues to lose fractions of decimal places daily and today is below 4.8%, the lowest levels since last September. 

Bitcoin chart by Tradingview

The bounce of Bitcoin (BTC)

After the bounce that saw the prices go from 6,600 dollars, lows of November 25th, to reach 8,000 dollars on Black Friday with a recovery of 20%, Bitcoin records prices that in the last 48 hours are trying to consolidate around 7,400 dollars, a level that corresponds to short-term support. 

It is necessary for BTC to go beyond 8,000 dollars as soon as possible, otherwise, it will be important to evaluate the holding of the $7,000-7,500 area in order not to incur a downturn that could bring prices back to revise the $6500.

Ethereum chart by Tradingview

The bounce attempt of Ethereum (ETH)

Ethereum still remains within a downward trend that is now evident and has had a decisive impact on price trends for more than six months. The rebound test of these last days has not been able to bring back and confirm the quotations above 155 dollars, former level of support now become crucial resistance for the next few days. 

For Ethereum it is necessary to recover as soon as possible this level otherwise the evident bearish trend will continue, which does not exclude a return below 135 dollars, testing the lows of the beginning of last May. 

 

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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