The decreasing volatility of the crypto market should also be highlighted today in the trading news.
Exactly one month after the financial earthquake that has invested all the assets of traditional and non-traditional finance – Bitcoin and cryptocurrencies included – and forced traders to seek liquidity causing obvious distortions in the balances of the classic correlations, the collapse of daily volatility brings the average back to the levels of last autumn.
On a weekly basis, the last five days show almost non-existent fluctuations for those accustomed to price fluctuations of up to several percentage points during the same day.
Usually, price contractions lasting several days anticipate a marked directional movement. For this reason, it will be important to carefully follow the price break, upward or downward, which if accompanied by volumes will begin to discover the intentions of operators for the next few days.
Among the first 100 cryptocurrencies capitalized, the day records a prevalence of sales in red, which becomes total among the Top 20. In fact, scrolling through the list of the top of the class it is necessary to go down to the 21st position to find the first sign above parity, occupied by Ethereum Classic (ETC) in countertrend with a +0.7% from yesterday’s levels.
Among the most famous cryptocurrencies, the ones uphill are Cosmos (ATOM) with +1% and HedgeTrade (HEDG), which scores among the top 5 of the day. Among the worst are Ren (REN) and Chainlink (LINK), both downhill by 5%, pulling the brake after the good climbs of the last two days.
Total daily trades fell by 5%, with Bitcoin falling below $1 billion on the fourth day of the last five. An event that has not occurred since the beginning of February when the value of a single Bitcoin was about 40% above current levels. The contraction in volumes confirms the pause that many operators have taken to better understand a phase that, as written above, for several days lacks directionality.
The total capitalization of the market fell by $5 billion to just over $192 billion. Bitcoin keeps the dominance unchanged remaining just above 64%, as well as Ethereum and Ripple (XRP), which consolidate the market shares of the last week.
Bitcoin news
Prices are falling for the second consecutive day, an event that has not happened since the last week of March, bringing prices back to the levels of the last weekend to test area 6700 dollars, former resistance violated at the beginning of the month.
The failure to break last week’s highs (about 7500) and the descent below the bullish trendline that until Friday showed a clear upward trend on the two-weekly cycle, indicates that the current monthly cycle started in mid-March has already marked the cycle highs and is now starting to conclude the movement expected by next week. At this stage, it is necessary to wait until the end of the monthly cycle to assess whether the current upward trend will be able to slow the decline above $5800-6000.
Only a descent below these levels will put the bullish structure of the 5-6 month cycle at risk.
Ethereum trading
In the last few hours, the fluctuations in the price of Ethereum in the 155-160 dollar area remain glued to the downward trendline that combines the decreasing highs since mid-February.
This trendline, even if it will not succeed to be violated in the next hours with the support of the buying volumes, confirms to be a decisive technical level to identify the higher trend.
As for Bitcoin, the monthly cycle of this crypto seems to be starting to end within the next week. In the medium term, the trend of Ethereum shows a better bullish approach. It will be important to keep prices above $145-140 in the coming days.
Only a fall below these levels would begin to cancel the last month’s rise and sound the alarm bells again in a long-term perspective.
