The downward trend on the fourth consecutive day for Bitcoin and for most altcoins highlights the first bearish movement in 2020 for the cryptocurrency sector. A trend that in terms of consecutive days of decline and intensity has not been recorded since November.
What is happening is bringing prices for most cryptocurrencies, including that of Bitcoin and altcoins, back to end-January levels.
The movement continues to be accompanied by significant volumes. Trading volumes on Bitcoin were again over a billion dollars yesterday, although prices are well below the values of 10 days ago. This shows that the Bitcoin quantity is at important levels, with over 501,000 bitcoins traded yesterday on the main exchanges, which is the second Bitcoin trading level per unit value since the end of November. This highlights that the sector is still very vibrant.
Today’s declines see a decrease in negative signs among the top 100 cryptocurrencies: today just over 65% are in the red.
Scrolling through the ranking of the main altcoins, today recorded only 3 positive signs among the top 25. These are the token Leo (LEO), 5%, Tezos (XTZ) up 6% and Chainlink (LINK) 8%.
Chainlink conquers for the first time in its history the 11th position in the ranking, just behind Tezos who consolidates the 10th position. Tezos and Chainlink seem to be the only two cryptocurrencies in countertrend among the top 25, with increases that place both of them among the best performances since the beginning of the year.
Tezos has gained 115% since the beginning of 2020, while Chainlink scores +100% from January 1st: they are the best three-figure performance since the beginning of the year among the top 30 altcoins.
By comparison, Bitcoin has gained 20% since the beginning of the year, with a decrease of 18% from the mid-February highs. Ethereum has gained 70% since the beginning of the year, while in mid-February this value had increased to +120%, and now records a loss of 26%. Ripple also gains 20% since the beginning of the year, a performance in line with that of Bitcoin. This highlights the three-figure strength of Tezos and Chainlink.
Total capitalization continues to fall to $250 billion, a level of capitalization that therefore returns to levels at the end of January and beginning of February, after having pushed over $300 billion with the rises in the first half of February.
Bitcoin dominance remains above 64%. Ethereum gains a few decimals and fluctuates around 10%, while Ripple is stable at 4.1%.
The decline of Bitcoin (BTC)
Bitcoin, as warned in recent days, is testing the key mid-term support threshold of $8,800. Although yesterday the decline even extended to $8,500, a reaction has brought prices back to the 8,800 level again, a crucial level in the continuation of the uptrend.
Today Bitcoin loses 4%. The decline coincides with 50% of the Fibonacci retracement if we consider the lows of early January and the highs of mid-February. This highlights the importance of the current levels where BTC is moving in these hours.
In the event of continued downward extensions below $8,500, the holding of the $8,300 area becomes crucial, whereby passes the trendline that keeps upward the technical structure that combines the lows of mid-December and early January. For Bitcoin, the bullish technical structure is still valid.
With the decline overnight, Ethereum sees prices back in the $210 area. The bearish head and shoulders is fulfilled which started yesterday with the breaking of the neckline in the area $250. The speed of the confirmation of the technical figure sees the prevailing short term profit taking by currently bouncing prices between 225 and 230 dollars.
For ETH it is necessary to find a support point where to restart. In order not to jeopardize the bullish trend of Ethereum it is necessary not to push under 200 dollars in the next days.
A recovery of $250 supported by purchases would restore confidence in the first of the altcoins, which today loses 4%.