Today, unlike the weekend, sees a marked prevalence of positive signs. Over 85% of cryptocurrencies have green signs. Among the major capitalized it is necessary to reach the 16th position occupied by Huobi (HT) to find the first negative sign: -1.5%. The rest are definitely above par with increases over 3% like Bitcoin (BTC) and Ethereum (ETH).
Among the top 40, the best today is Bitcoin Satoshi Vision (BSV) which continues to be characterized by the strong daily increases of over 6%, followed by the other Bitcoin fork, Bitcoin Cash (BCH) with +4.5%, a rebound that comes after testing the 200 day moving average. Cosmos (ATOM) stands out with +5%. Tezos (XTZ) and Chainlink (LINK) are still in 10th and 11th position, protagonists of countertrend days last week. Today they rise by 2.5% and 4% respectively.
Prices continue to float on supports already touched at the end of last week. During the weekend the market was characterized by low volatility with prices trying to build a foundation threshold from which to start again.
Saturday’s trading day was poorly animated and characterized by low volumes, less than half of the daily average traded in the last 15 days. On Sunday, trading volumes jumped twofold, a trend that continues today with trades at 120 billion dollars, +20% from Sunday’s levels and +50% from Saturday.
Taking as a reference the prices of last Monday, only one green sign emerges on a weekly basis among the first 40 cryptocurrencies, that of Chainlink, which from the levels of February 24th gains 3% thanks to today’s performance. All the others are in strong loss, 90% with double-digit declines, except Lisk (LSK) -2%, while Bitcoin, Crypto.com (CRO), Qtum (QTUM) and Bitcoin Gold (BTG) lose about 8-9%. All others lose more than 10%.
A descent that aligns with that of the traditional financial markets, which since last week are falling with historic declines. This is due not so much to the repercussions of the Coronavirus but to a reversal of uncertainties that are also affecting the cryptocurrency sector, which apparently seemed devoid of social and health aspects, instead they are destabilizing even the digital sector, beyond the balances that regulate traditional finance and trade.
In such a delicate phase, the reallocation of portfolios and investments by institutions also sees the performance of cryptocurrencies decline. A further signal comes from the low trading volumes recorded last week on CME and Bakkt, which have seen volumes fall. This is a signal that is reflected in cryptocurrencies and bitcoin and could give a justification for the recent declines. It could be a transitory movement linked to international uncertainties at a socio-sanitary and socio-political level, but not directly economic.
The market cap remains above 250 billion dollars, the dominance of Bitcoin has remained unchanged since last Friday at around 65%. In clear contraction that of Ethereum, under 10%. Ripple instead stable at 4.1%, same levels for the past three weeks.
Bitcoin tries to consolidate the $8,800, to the extent that over the weekend the swings were contained within $300 with $8,800 acting as the balance level.
Bitcoin today is approaching $8,900 but it will be necessary for BTC to try to recover the $9,500 before it reaches a first bullish signal. The $8,500-8,400 threshold, revised on Sunday afternoon, confirms the level of dynamic resistance crucial to maintain the bullish trend.
Ethereum’s recovery is sharper, rising 8% from yesterday afternoon’s lows to $230 at the moment. A bullish movement that continues today with a gain of 3.5% and that currently, in the medium-short period, does not mark a maximum higher than the lows recorded during the last week.
It is necessary for Ethereum to recover the 235 or even the 240 dollars in the next few days in order to identify a first level of swing on the lows and to be able to go again to evaluate the recovery of the 255 dollars that has become medium-term resistance.
A reversal of prices below the $215, which was the target level of the head and shoulders, would project Ethereum down to $190-200: so there’s plenty of room for a lack of real direct support.