The crypto sector fails to recover beyond short-term resistance levels, with Bitcoin continuing to remain the beacon that marks the direction of all the rest of the altcoins.
Today, 80% of the cryptocurrencies are in negative territory. It’s not so much the declines that are worrying: among the first 15 only Tezos (XTZ) and Chainlink (LINK), the worst of the day, mark descents that go beyond 6%, while for all the others the declines stop between 1 and 3% on a daily basis.
However, the worrying aspect is the lack of recovery of the levels of resistance that yesterday seemed to have been reached and overcome effectively. This is not the case, with Bitcoin (BTC) returning to the lows of the last three months, Ethereum (ETH) sliding under the support that until yesterday distinguished its bullish structure compared to Bitcoin.
Among the best rises of the day, there is Aave (LEND), a token based on Ethereum that is making a name for itself in DeFi and that in the last few days has gained a place among the top 100 with the highest capitalization. With today’s increase of 40%, Aave climbs to 86th position.
What is drawing attention and is becoming evident in these days, as well as yesterday, are the trading volumes of Bitcoin. General trades are contracting sharply with volumes slipping below $95 million a day, far from last week’s average.
However, against the trend, Bitcoin volumes have marked the second-highest trading day ever the other day. Even yesterday they remained high, albeit lower, scoring the fifth-highest trading day of the last year.
Capitalization remains above $220 billion. Bitcoin dominance gains ground and is back at 64.5%. Ethereum and Ripple remain unchanged.
The lack of confirmation of exceeding $8,000 brings Bitcoin back to the lows touched on Monday afternoon. This possible further slide below $7,500 could even cause concern in the medium to long term as it would definitely affect the bullish structure built in the last three months.
It is, therefore, necessary to observe the strength of the support in the next few hours.
In the last 24 hours, Ethereum hasn’t recovered the $200. The worrying signal is that with the breakage of the dynamic support of $195, it would match the trend, which was upward until yesterday, to that of Bitcoin. The testing of prices at $190 is not worrying at the moment, but in case of further decline, the next target is in the $175 area.
This would be a movement that would jeopardize the healthy bullish structure that Ethereum had configured in the last three months and that is now facing to avoid undermining all the work done by the purchases throughout the first part of 2020.