Today 90% of cryptocurrencies are downwards
Today 90% of cryptocurrencies are downwards

Today 90% of cryptocurrencies are downwards

By Federico Izzi - 25 Jun 2020

Chevron down

The day begins with a downward trend that sees more than 90% of the first 100 cryptocurrencies in red. This situation, if it were to continue until the end of the day, would see the third consecutive closing negatively, highlighting the worst week in June

coin360 20200625

In fact, the decline that is characterizing these recent hours, already with the closing of yesterday evening, highlighted the return of sales, cancelling the strong rise that had characterized the day on Monday, with a leap that had led to touch the levels of crucial resistance in the medium term. 

But here, instead of triggering new purchases, the coverage prevailed, with the rejection of the increases and a decline downwards that sees the red sign prevailing on a weekly basis. 

The decline in the cryptocurrency sector in the last few hours is in line with the decline that the stock markets also suffered yesterday

This downturn has seen the US and European stock markets close in the negative. The S&P 500 lost 2.2%, the DowJones fell 2.7%, the Eurostoxx fell 3.1%. Today and tomorrow the Asian markets are closed for holidays. Only Tokyo is open with the Nikkei index which closed at -1.2% in the wake of general pessimism.

This highlights how these last few days are bringing back a correlation between the crypto and the stock market. 

GOLD 20200625

On the contrary, yesterday gold reached a peak of $1,796 an ounce, the highest in the last 8 years. This highlights a decorrelation with the price of Bitcoin. For the month of June, gold has a positive balance, as opposed to BTC which has a negative one.

Bitcoin loses 5%, Ethereum does worse, losing 6%. XRP is down 4.5% today. 

Scrolling through the list of the main cryptocurrencies among the most capitalized, among the top 50 there are only two signs above parity, one of which is the Leo (LEO) token that with an increase of 1.7% recovers $1.18. 

COMP 20200625

Compound (COMP) does better with +4%. COMP continues to register strong fluctuations due to speculation that since the launch of the token continues to record strong upward and downward excursions. 

Despite today’s recovery, Compound has seen its prices lose 40% from the highs recorded between Sunday and Monday. 

Compound continues to remain the leader in the DeFi sector with over $550 million, maintaining a stable first position followed by Maker at just over $460 million. 

Compound now holds 35% of total deposits, which in the last few hours, despite the general weakness, continue to increase, recording new absolute highs with over $1.560 billion locked.

Among the few positive signs of the day, in addition to Compound, there are two other tokens of the DeFi sector, Synthetix Network (SNX), which scores a +7%, and Bancor (BNT), +2.5% on a daily basis. 

The best of the day is Quant (QNT) with +20%, climbing to 70th position with just under $100 million in capitalization.

On the opposite side, there’s a clear prevalence of red signs, with Seele-N (SEELE) losing more than 22%, followed by Siacoin (SC), down 14%. Among the best known also Verge (XVG) and Tezos (XTZ), down by 10%. 

With today’s decline, Tezos is tailed by Chainlink (LINK) in 12th position with a difference of just over $150 million. Until a few days ago, Tezos had held the 10th position among the largest capitalized for weeks.

Today’s decline brings the total capitalization to over 260 billion dollars. Bitcoin falls below 64% dominance. Ethereum returns below 10% of the market share. XRP again gains some fraction of market share and returns above 3.05%. 

BTC 20200625
Bitcoin chart by Tradingview

Bitcoin (BTC) downwards

With the decline of the last hours, Bitcoin goes to test the psychological threshold of $9,000 again, touching the lows of 10 days ago that coincide with the lows of the current monthly sub-cycle that is decisive for the continuation of the movement in the coming days.

Prices are entering the most critical cyclical phase of the current monthly cycle, which started from the lows on May 25th and reached its highest point at $10,500 after a few days on June 1st.

This highlights how the current monthly cycle is shaping a neutral cycle that could turn downwards if the $8,900 low breaks in the next few hours and days.

It is necessary to regain the relative highs recorded last Monday, $9,700-9,800, as soon as possible in order to get an upward signal, otherwise, the trend would be in line with the closing of the monthly cycle scheduled for next week.

ETH 20200625
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum fails to exceed $250. Yesterday’s rise has not been confirmed by new purchases, which is a necessary condition to overcome the $250, where the profit-taking has prevailed, pushing Ethereum to test the lower neckline of the bullish channel with prices returning below $230

It is necessary for ETH to defend this threshold in order not to risk a lunge that would lead to testing the key medium-term level of $215, a level of resistance that had rejected the bullish attacks last May.

ETH is also cyclically entering the most critical phase of the current monthly cycle that began with the May 11th lows, a cycle that is expected to end within the first ten days of July. 

In the event of a $230 break, it is necessary for Ethereum to defend the $215 support.


Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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