In the same way as for the past week, the trend of daily ups and downs continues, highlighting the high volatility of Bitcoin.
After yesterday’s positive day, there is now a clear prevalence of negative signs with more than 80% of the first 100 cryptocurrencies falling.
After a week that saw the most violent downward movement ever with BTC prices dropping 50% in 48 hours, dragging with it the entire sector, the crypto market continues to suffer.
Bitcoin, like Ethereum, is trying to consolidate at these levels. It is a movement that sees volatility leap to the highest levels in the last six years on a daily basis. Volatility that continues to remain at 10% daily on a monthly basis, while the daily figure over two months sees the level rise to the same level as in February 2018 when Bitcoin prices plummeted from the all-time high, recorded two months earlier, going from $20,000 to $6,000 in just two months.
These volatility values indicate that the moment is very particular. As in traditional markets, on a historical basis this has never happened and therefore there are no similar references to what is happening in these days.
The balance on a weekly basis, taking as reference the levels of last Wednesday, is decidedly negative, with declines that affect all the first 100 cryptocurrencies, none in positive, and over 90% have double-digit declines. Among the big ones, the ones suffering the most are Ethereum, -40%, and Tezos (XTZ) and Chainlink (LINK) that score -50%. Both were characterized by strong increases that had distinguished their trend against the market until a week ago.
On a day-to-day basis, among the strong countertrend increases during a day where the red sign prevails, there is Aave (LEND) which rises by 8%. LEND is increasingly establishing itself among the leading teams and projects in the DeFi sector.
Dash (DASH) is also climbing, recovering by 6%, even if the declines of the past few days have seen Dash’s values plummet to 33 dollars, the absolute lowest since its launch on the market in spring 2017. Among last week’s worst declines, Dash has lost more than 75% of its value since its high in mid-February.
The worst downward movement is that of Zilliqa (ZIL), 81st position, which scores -6%. Same bounce for Chainlink, who is back down again today. Chiliz (CHZ) also suffers, down 6% as well. Chilliz is going through a difficult period, as the token is aimed at the sports sector that has been halted due to the Coronavirus emergency.
The market cap remains below $150 billion with a sharp drop in total volumes, with a 30% drop from yesterday’s levels, except for bitcoin that keeps daily trades above 1.5 billion, high levels that highlight how BTC is particularly affected by operators who trade large volumes.
The dominance of bitcoin remains around 64%, while Ethereum drops to 8.3% market share. Ripple defends its dominance at 4.2%, despite prices fluctuating at the lowest levels recorded last week. XRP today moves to 0.14$ while last Friday it pushed to test the 10 cents.
Bitcoin tries to consolidate the price above $5,000, with significant volumes. From a technical point of view, BTC must recover the $5,600 as soon as possible, otherwise a descent below $4,500 is potentially dangerous.
Ethereum tries to confirm the bounce above $110, but with much difficulty. For ETH, like for Bitcoin, the trend is set downwards.
Last week’s blow pushed the prices to $90, which had been abandoned in December 2018. Definitely a cheap shot for Ethereum that breaks the confidence and euphoria that had characterized it in the first phase of 2020.
It is necessary to resume as soon as possible the 125-135 dollars, former medium-long term support. A further drop below $100 would further worsen Ether’s technical aspect and morale.