Cryptocurrencies have low volatility and reduced volumes
Cryptocurrencies have low volatility and reduced volumes
Trading

Cryptocurrencies have low volatility and reduced volumes

By Federico Izzi - 16 Dec 2019

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The week begins with a perfect balance among the first 100 cryptocurrencies, half in positive territory and the other half in red. The weekend has passed without any particular remarks to make. The volatility of the cryptocurrency sector remains low: it is at 2.5% over the last 30 days. It is not the minimum of 2019 but it is the longest period at such low levels. Since the end of November, volatility has plummeted across the industry. 

In addition to the low volatility, this week’s start also brings out low volumes: in the last 24 hours, there have been about 45 billion dollars traded, the lowest levels since the beginning of the month. December is therefore characterised by low volatility and reduced trade. 

Source: COIN360.com

There are few tokens that are distinguishing themselves in the last three weeks. There are continuous countertrend signals from Cosmos (ATOM), which today marks a decline of almost 5% but that does not affect the uptrend that has developed and is still present from the lows of the third decade of November. Yesterday ATOM distinguished itself for having reached the maximums since mid-July, with prices returning to the threshold of 4.60 dollars. Therefore, today’s downturn highlights profit-taking on the highs of the last 5 months.

Tezos (XTZ) also performs well. Although today it loses just over 1%, in the last week, together with Cosmos, it has distinguished itself for having given clear countertrend signals. Last Friday, Tezos reached an all-time high of 1.86 dollars.

Among the best of the day, Waves (WAVES) rose by 18%. With today’s rise, Waves scored the best rise of the last week in the top 100, gaining 50% and returning above 81 cents of a dollar. Enjin Coin (ENJ) is back on the rise, earning 16%. In contrast, like Cosmos, Verge (XVG) falls with the same intensity, occupying the 63rd position with just over 69 million dollars of capitalisation.

The market cap continues to remain below $195 billion. The dominance of Bitcoin remains unchanged, Ethereum falls again below 8% and Ripple returns to 4.75%, the lowest level that was already seen at the beginning of the month of the last quarter.

Bitcoin chart by Tradingview

Bitcoin (BTC)

Bitcoin continues to move in very dangerous territory, testing again the 7,000 dollars yesterday afternoon, to be exact: 7,040 dollars. In these hours BTC has returned to 7,200 dollars but fluctuates on the dynamic trendline which, at the moment, seems to hold the structure that continues to remain very weak.

Prices are not able to return beyond the dynamic downward trendline that unites the highest downturns since last November. For Bitcoin, it is necessary to get back to 7,300-7,500 dollars as soon as possible to allow for a subsequent return over 7,700 dollars. 

On the contrary, falling below the lows on Saturday at $7,030 would attract speculation that with low trading volume can become aggressive and dangerous.

Ethereum chart by Tradingview

Ethereum (ETH)

For Ethereum, the situation continues to give rise to suspicion and gives absolutely no indication of a possible reversal of the period. Ethereum has been in a downward phase since last week without giving any signs of a reversal. 

Over the weekend ETH returned to test the 140 dollars where purchases have taken over, allowing to float above this level. However, as with Bitcoin, the phase is very delicate, so a reaction above $145-150 is necessary. Otherwise, ETH remains within a weak and non-optimistic phase for the next few days. 

XRP chart by Tradingview

Ripple (XRP)

Ripple volumes continue to decrease, on a daily basis it exchanges less than both Bitcoin and Ethereum, but also Bitcoin Cash and EOS. This shows that Ripple is very weak not only because of the price which has now returned to 21 cents, the lowest relative lows since the end of last November, but is also not very dynamic, with little interaction and low interest from investors. 

 

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. 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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